Social Responsibilities of Business and Business Ethics MCQs with Answers

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

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

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

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

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

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

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

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

Question-5. Business people have the skills to solve

1. Some social problems
2. No social problems
3. All economic problems
4. All social 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. Business and Shareholder itself
2. Suppliers
3. Foreign investors
4. Banks

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

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

Question-8. Social responsibility is

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

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

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

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

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

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

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

Question-12. Under the factoring agreement, the factor

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

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

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

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

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

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

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

Question-16. Debenture holders are called______of the company.

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

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

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

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

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

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

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

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

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

1. Debentures
2. Retained earnings
3. Preference shares
4. Equity 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. Economic Responsibility
2. Legal Responsibility
3. All the above
4. Ethical Responsibility

Question-23. Which statement is/are true?

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

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

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

Question-25. Which statement is true?

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

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

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

Question-27. IDRs are issued in

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

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

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

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

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

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

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

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

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

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

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

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

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

Question-34. Equity shareholders are called

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

Question-35. Equity share capital represents______of the company.

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

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

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

Question-37. The environmental analysis includes

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

Question-38. The term redeemable is used for

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

Question-39. Unethical behaviour is often triggered by

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

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

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

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

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

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

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

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

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

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

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

Question-45. Social responsibility is

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

Question-46. Trade credit is an example of

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

Question-47. Which statement is true?

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

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

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

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

Question-50. Business people have the skill to involve

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

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

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

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

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

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

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

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

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

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

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

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

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

Question-57. Ethics is important for

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

Question-58. ADRs are issued in

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

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

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

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. teleology
2. deontology
3. egoism
4. utilitarianism

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

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

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

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

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

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

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

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