Topic 3: Business Ethics Fundamentals

What is the primary focus of business ethics?

• a) Maximizing profits

• b) Deciding what is morally right or wrong in business

• C) Promoting the business

• d) Promoting public relations

What led to the introduction of the Sarbanes-Oxley Act (SOX) in 2002?

• a) The financial crisis of 2008

• b) Increasing globalization

• c) The Enron scandal of 2001

• d) Rise of social media platforms

How does the public view business ethics at the broad level?

• a) It focuses on specific companies' practices

• b) It reflects the general belief about whether businesses are ethical overall.

• c) It evaluates the profitability of businesses.

• d) It analyzes laws that businesses follow.

What is the main difference between ethics and morals?

• a) Ethics are personal standards, while morals come from society.

• b) Morals are only applicable in religious contexts.

• c) Ethics and morals are interchangeable terms.

• d) Morals are personal standards, while ethics are societal standards.

Which of the following best defines descriptive ethics?

• a) Establishing guidelines for ethical behavior

• b) Analyzing moral beliefs and practices as they actually exist

• c) Prescribing how people should behave morally

• d) Following universally accepted ethical principles

What should be the decision if a business action is both legal and ethical but not profitable?

• a) Proceed with caution

• b) Pursue the action aggressively

• c) Avoid the action or find ways to make it profitable

• d) Ignore the ethical considerations

If a business action is ethical and profitable, but the law is unclear, what should be the approach according to the Venn model?

• a) Avoid the action altogether

• b) Proceed with caution

• c) Pursue it aggressively

• c) Pursue it aggressively

Which management model ignores ethical principles and focuses only on personal or organizational gain?

• a) Immoral Management

• b) Moral Management

• c) Amoral Management

• d) Ethical Relativism

• What is a key characteristic of moral management?

• a) Exploiting opportunities for profit

• b) Focusing solely on business objectives

• c) Integrating ethical values into all decisions

• d) Ignoring ethical considerations altogether

Which level of moral development is associated with self-interest and rewards?

• a) Conventional Level

• b) Post-Conventional Level

• c) Pre-Conventional Level

• d) Universal-Ethical Level