BBM Business Ethics and Corporate Governance

Question 1

Which ethical theory holds that the morality of an action is determined solely by its outcomes or consequences?

Accepted Answer

Consequentialism

Answer

Deontological ethics

Answer

Virtue ethics

Answer

Social contract theory

Question 2

A company's board of directors is responsible primarily to which group?

Accepted Answer

Shareholders

Answer

Company employees

Answer

Government regulators

Answer

Local communities

Question 3

What does the term 'Corporate Social Responsibility' (CSR) primarily refer to?

Accepted Answer

A company's commitment to ethical behavior and contributing to societal well-being

Answer

A company's legal obligation to pay taxes

Answer

A business model focused solely on profit maximization

Answer

Government-mandated community service hours for employees

Question 4

Which of the following best describes a 'conflict of interest' in a business setting?

Accepted Answer

A situation where personal interests could improperly influence professional decisions

Answer

Disagreement between two competing companies

Answer

Legal disputes between employees and management

Answer

Competition between departments for budget resources

Question 5

The Sarbanes-Oxley Act (SOX) was enacted primarily to address which issue?

Accepted Answer

Corporate accounting fraud and investor protection

Answer

Environmental pollution by corporations

Answer

International trade disputes

Answer

Employee workplace safety standards

Question 6

Which principle of corporate governance requires that managers be answerable for their use of company resources?

Accepted Answer

Accountability

Answer

Transparency

Answer

Fairness

Answer

Responsibility

Question 7

A whistleblower in a corporate context is best described as someone who:

Accepted Answer

Publicly reports misconduct or illegal activity within an organization

Answer

Negotiates labor contracts on behalf of employees

Answer

Audits a company's financial statements externally

Answer

Mediates disputes between executives and the board