BBM Business Ethics and Corporate Governance 1

Question 1

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

Accepted Answer

Consequentialism

Answer

Consequentialism judges actions based solely on their results, with utilitarianism being the most common form that seeks the greatest good for the greatest number.

Question 2

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

Accepted Answer

Shareholders

Answer

The board of directors is elected by and legally obligated to represent the interests of shareholders, who are the owners of the corporation.

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

CSR refers to a business's voluntary commitment to operate ethically and contribute positively to society, the environment, and its stakeholders beyond legal requirements.

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

A conflict of interest occurs when an individual's personal interests could compromise or appear to compromise their professional judgment and decision-making.

Question 5

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

Accepted Answer

Corporate accounting fraud and investor protection

Answer

The Sarbanes-Oxley Act of 2002 was enacted in response to major corporate scandals like Enron and WorldCom to improve financial disclosures and prevent accounting fraud.

BBM - Business Management Degree Practice Test

BBM - Business Management Degree Practice Test

BBM Business Ethics and Corporate Governance 1