Social Responsibilities of Business and Business Ethics MCQs with Answers

Question-1. The interest rate on Three months Inter Corporate deposit is

1. 0.12
2. 0.15
3. 0.1
4. 0.2

Question-2. The maturity period of commercial paper usually ranges from

1. 90 days to 1 year.
2. 15 days to 1 year
3. 20 to 40days
4. 60 to 90 days

Question-3. According to the concept of moral intensity, a worker is most likely to behave ethically and legally when

1. a manager observes his or her behavior closely
2. the worker has intense morals
3. the consequences of the act are minor
4. the consequences of the act are substantial

Question-4. The hand-of-government refers to the

1. ability of the government to interfere in business negotiations
2. role of corporations to be profitable within the law
3. effect of national politics on business decisions
4. impact of changing government regulations

Question-5. Business people have the skills to solve

1. All social problems
2. Some social problems
3. No social problems
4. All economic problems

Question-6. The business community's aversion to binding international legal standards governing corporate operations contrasts with its strong advocacy of international law commitments applied to the obligation of governments towards

1. Banks
2. Business and Shareholder itself
3. Suppliers
4. Foreign investors

Question-7. ______are debt instrument that does not carry a specific rate of interest , but issued at a heavy discount

1. Bonds
2. Debentures
3. None of the options
4. Equity Shares

Question-8. Social responsibility is

1. Broader than legal responsibility
2. Same as legal responsibility
3. Narrower than legal responsibility
4. None of the options

Question-9. Environmental protection can best be done by the efforts of

1. Business people
2. Government
3. Scientists
4. All the people

Question-10. Which of the following is capable of doing maximum good to society?

1. Business success
2. Laws and regulations
3. Ethics
4. Professional management

Question-11. The ethical dilemma of choosing between two rights refers to

1. choosing between the lesser of two evils
2. deciding which of two employee rights is the most important
3. deciding to offer a bribe or lose out on an important opportunity
4. choosing between the two types of sexual harassment

Question-12. Under the factoring agreement, the factor

1. Collects the clients debt or accounts receivables.
2. Transfer the goods from one place to another.
3. Makes the payment on behalf of client
4. Produces and distributes the goods or services

Question-13. Which of the following does not contribute to the development of a manager's standard of ethics?

1. competitor behaviours
2. society's norms and values
3. individual life experiences
4. environmental situations

Question-14. The preference shares that can be converted into equity shares are known as

1. Convertible preference shares
2. Non convertible preference shares
3. Non Participating preference shares
4. Participating preference shares

Question-15. Which of the following can explain the need for pollution control?

1. Cost savings
2. Reduced risk of liability
3. Reduction of health hazards
4. All of them

Question-16. Debenture holders are called______of the company.

1. Creditors
2. Owners
3. Executives.
4. Partners

Question-17. Which is the approach to corporate planning?

1. Customers and workers satisfaction
2. Planning skills
3. Optimising
4. All of the above

Question-18. It is purely voluntary obligation. Identify the category of social responsibility referred here.

1. Discretionary Responsibility
2. Legal Responsibility
3. Ethical Responsibility
4. Economic Responsibility

Question-19. The national Society of Professional Engineers had a code, which requires professionals to

1. Dissociate themselves from organizations that are of a questionable character
2. Further the cause of public good
3. Advise clarity, the consequences, if a technical opinion is overruled by a non-technical person
4. All of the above

Question-20. It is a primary social responsibility to produce goods and services that society wants and sell them at reasonable profit. Identify the category of social responsibility referred here.

1. Economic Responsibility
2. Ethical Responsibility
3. Legal Responsibility
4. Discretionary Responsibility

Question-21. Which one of the following is known as the Risk capital?

1. Equity shares
2. Debentures
3. Retained earnings
4. Preference shares

Question-22. It includes the behavior of the firm expected by the society but not codified by law. Identify the category of social responsibility referred here.

1. Ethical Responsibility
2. Economic Responsibility
3. Legal Responsibility
4. All the above

Question-23. Which statement is/are true?

1. Ethics is not synonymous to religious morality or moral theology
2. Ethics is the principle that guide the human behaviour
3. The terms ‘ethics' and ‘morality' are not synonymous terms
4. All of the above

Question-24. Milton Friedman stated his belief that ‘there is only one social responsibility' for a company to use its resources to

1. give as much to charitable causes as possible
2. ensure employment
3. provide good facilities for workers
4. increase profits so long as it stays within the rules of the game

Question-25. Which statement is true?

1. Human values system plays a vital role in total quality management
2. Values give the real meaning to total quality management effort
3. Total quality management is a corporate management strategy
4. All of the above

Question-26. Which one of the following is the unsecured short term deposit made by one company with another?

1. ICD
2. ADR
3. IDR
4. GDR

Question-27. IDRs are issued in

1. India
2. Canada
3. China
4. None of the options

Question-28. Which of the following institution provides financial assistance towards balanced regional development and development of management education in the country?

1. Industrial finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India (ICICI)
3. Industrial development Bank of India ( IDBI)
4. Life insurance Corporation of India (LIC)

Question-29. If business is to operate in a society which is full of diverse and complicated problems, it may have

1. Little chance of success
2. Great chance of success
3. Little chance of failure
4. No relation with success or failure

Question-30. The elements of management system in quality environment of TQM is

1. Method and procedure
2. Process
3. Focus
4. All of the above

Question-31. Which one of the following is the advantage of Equity shares?

1. No charge on assets
2. Dilution of control
3. Higher cost
4. Risk.

Question-32. Which one of the following is NOT the disadvantage of raising funds through debentures?

1. No Dilution of control
2. All of the options.
3. Charge on assets
4. Fixed obligation

Question-33. That an enterprise must behave as a good citizen is an example of its responsibility towards

1. Owners
2. Workers
3. Consumers
4. Community

Question-34. Equity shareholders are called

1. Owners of the company
2. Partners of the
3. Guardian of the
4. Executives of the company

Question-35. Equity share capital represents______of the company.

1. Permanent capital
2. Fixed capital
3. Working capital
4. Fluctuating capital

Question-36. “Ethics deals with the right actions of individuals.” Who said?

1. Peter F. Drucker
2. C. S. Rao
3. J. R. Betty
4. C. Zahe

Question-37. The environmental analysis includes

1. Political conditions
2. Social factors
3. Economic conditions
4. All of the above

Question-38. The term redeemable is used for

1. Preference shares
2. Equity shares
3. Public deposits
4. Commercial papers

Question-39. Unethical behaviour is often triggered by

1. pressure from higher management to achieve goals
2. an organizational atmosphere that condones such behaviour
3. both (a) & (b)
4. a system of checks and balances

Question-40. Which of the following factors has forced businesses to assume social responsibility?

1. Pressure of labour movement
2. All the above
3. Threat of public regulation
4. Impact of consumer consciousness

Question-41. Which one of the following is not principle business ethics?

1. Principle of universality
2. Principle of humanity
3. Principle of autonomy
4. Principle of dissatisfaction

Question-42. Which is the aspects of TQM efforts?

1. Problem solving tools
2. Internal service quality
3. Total involvement of all personnel
4. None of the above

Question-43. Which one of the following statement is TRUE about Public deposits?

1. Public deposit cannot exceed 25% of share capital and reserves
2. Rate of interest offered on public deposits is lower than the rate of interest on bank deposits
3. Public deposit are issued for a period of 6 months to 5 years
4. It is one of the reliable sources of finance

Question-44. Which of the following alone can ensure effective ethics programme in a business enterprise?

1. Publication of a code
2. Involvement of employees
3. Establishment of compliance mechanisms
4. None of them

Question-45. Social responsibility is

1. Same as legal responsibility
2. Broader than legal responsibility
3. Narrower than legal responsibility
4. None of them

Question-46. Trade credit is an example of

1. Short term finance
2. Long term finance
3. All of the options.
4. Medium term finance

Question-47. Which statement is true?

1. Skills are not enduring due to fatigue
2. The final proof of sincerity and seriousness is uncompromising emphasis on integrity of character in a job
3. The mental contents of the good person are called moral and ethical values
4. All of the above

Question-48. It is the obligation of the business to take those decisions and to perform those actions which are expected in respect of the values and norms of the society. Identify the concept.

1. Social Ethics
2. None of the options
3. Social Skills
4. Social Responsibility

Question-49. These are socially determined moral principles which govern business activities. Identify the concept.

1. Social Skills
2. Social Responsibility
3. Business Ethics
4. None of the options

Question-50. Business people have the skill to involve

1. Some social problems,
2. All economic problems.
3. No social problems
4. All social problems

Question-51. Which one of the following is the first Global Company who issue IDR in India?

1. Standard Chartered PLC
2. HDFC
3. Reliance
4. HSBC

Question-52. Corporate social responsibility that extends beyond legal mandates can help meet societal expectations in the absence of

1. Statutory devices
2. Social tool
3. Cost tool and Techniques
4. Science tool

Question-53. Public Deposits are the deposits that are directly raised from

1. The public
2. The auditors
3. The owners
4. The directors

Question-54. Which of the following statements about ethical standards are TRUE?

1. The upper limits of ethical standards are set by individual standards
2. The laws of economically developed countries generally define the lowest common denominator of acceptable behaviour
3. The actual degree of enforcement of the law in an underdeveloped country would determine the lower limit of permissible behaviour
4. All of the above

Question-55. Which of the following is not the social responsibility of business towards the investors?

1. To give appropriate salary
2. To ensure proper dividend
3. To ensure safety of capital
4. To ensure proper utilization of capital

Question-56. Which of the following is not the social responsibility of business towards the consumers?

1. To give them a share of profit
2. To bring out reality in advertisement
3. To make available good quality goods at cheap rates
4. To avoid adulteration

Question-57. Ethics is important for

1. Top management
2. Middle-level managers
3. Non-managerial employees
4. All of them

Question-58. ADRs are issued in

1. USA
2. China
3. India
4. Canada

Question-59. Under the lease agreement , the lessee gets the right to

1. Use the asset for specific period of time.
2. Share the profit earned
3. Vote
4. Sell the asset.

Question-60. If you believe in making decisions for the good of most people, you can be described as following which school of thought?

1. utilitarianism
2. teleology
3. deontology
4. egoism

Question-61. Preference shares do not carry preferential rights over equity shares regarding

1. Voting rights
2. Payment of dividend
3. None of the options
4. Payment of capital

Question-62. Carbon monoxide emitted by automobiles directly contributes to

1. Water pollution
2. Noise pollution
3. Land pollution
4. Air pollution

Question-63. Internal sources of capital are those that are generated through

1. Within the business
2. Issue of shares
3. Outsiders
4. Loans form banks

Question-64. Funds required for purchasing current assets are known as

1. Working capital
2. Fixed capital
3. Lease financing
4. Retained earnings