DECA Business Ethics 2

Question 1

What is the primary purpose of a non-disclosure agreement (NDA) in business ethics?

Accepted Answer

To protect confidential business information from being shared

Answer

To increase employee compensation

Answer

To outline employee vacation policies

Answer

To establish a company's marketing strategy

Question 2

Which practice violates ethical standards in advertising?

Accepted Answer

Making false claims about a product's benefits

Answer

Using testimonials from satisfied customers

Answer

Clearly stating product limitations

Answer

Comparing prices with competitors accurately

Question 3

In business ethics, 'fairness' most directly relates to:

Accepted Answer

Treating all stakeholders equitably and without bias

Answer

Ensuring all employees earn the same salary

Answer

Giving customers whatever price they negotiate

Answer

Making all business decisions by committee vote

Question 4

Which of the following best describes 'greenwashing'?

Accepted Answer

Misleading consumers by falsely claiming products are environmentally friendly

Answer

A legitimate environmental certification program

Answer

Washing equipment with eco-friendly soap

Answer

A government program to reduce business pollution

Question 5

A business manager discovers that a top-performing employee has been falsifying sales reports. Ethically, the manager should:

Accepted Answer

Address the behavior and apply appropriate consequences

Answer

Ignore the behavior due to the employee's high performance

Answer

Encourage other employees to do the same

Answer

Promote the employee to a less visible role

Question 6

What does 'due diligence' mean in a business ethics context?

Accepted Answer

Thoroughly investigating and verifying information before making decisions

Answer

Paying all bills on time

Answer

Delegating responsibilities to qualified employees

Answer

Setting reasonable deadlines for project completion

Question 7

Which stakeholder group is primarily affected when a company engages in price-fixing with competitors?

Accepted Answer

Consumers and the market as a whole

Answer

Shareholders only

Answer

Only the employees of the company

Answer

Government regulatory agencies