DECA Business Ethics 2 — Questions and Answers
Question 1: What is the primary purpose of a non-disclosure agreement (NDA) in business ethics?
- To increase employee compensation
- To protect confidential business information from being shared (Correct answer)
- To outline employee vacation policies
- To establish a company's marketing strategy
Correct answer: To protect confidential business information from being shared
An NDA is a legal contract that prevents parties from sharing confidential information with unauthorized individuals or organizations.
Question 2: Which practice violates ethical standards in advertising?
- Using testimonials from satisfied customers
- Clearly stating product limitations
- Making false claims about a product's benefits (Correct answer)
- Comparing prices with competitors accurately
Correct answer: Making false claims about a product's benefits
Making false claims about a product is deceptive advertising and violates both ethical standards and consumer protection laws.
Question 3: In business ethics, 'fairness' most directly relates to:
- Treating all stakeholders equitably and without bias (Correct answer)
- Ensuring all employees earn the same salary
- Giving customers whatever price they negotiate
- Making all business decisions by committee vote
Correct answer: Treating all stakeholders equitably and without bias
Fairness in business ethics means treating all stakeholders — employees, customers, suppliers — equitably and without discrimination or favoritism.
Question 4: Which of the following best describes 'greenwashing'?
- A legitimate environmental certification program
- Misleading consumers by falsely claiming products are environmentally friendly (Correct answer)
- Washing equipment with eco-friendly soap
- A government program to reduce business pollution
Correct answer: Misleading consumers by falsely claiming products are environmentally friendly
Greenwashing is the practice of making unsubstantiated or misleading claims about the environmental benefits of a product or company.
Question 5: A business manager discovers that a top-performing employee has been falsifying sales reports. Ethically, the manager should:
- Ignore the behavior due to the employee's high performance
- Address the behavior and apply appropriate consequences (Correct answer)
- Encourage other employees to do the same
- Promote the employee to a less visible role
Correct answer: Address the behavior and apply appropriate consequences
Ethical management requires addressing dishonest behavior consistently regardless of an employee's performance level to maintain organizational integrity.
Question 6: What does 'due diligence' mean in a business ethics context?
- Paying all bills on time
- Thoroughly investigating and verifying information before making decisions (Correct answer)
- Delegating responsibilities to qualified employees
- Setting reasonable deadlines for project completion
Correct answer: Thoroughly investigating and verifying information before making decisions
Due diligence means conducting a thorough investigation to ensure information is accurate and complete before making important business decisions.
Question 7: Which stakeholder group is primarily affected when a company engages in price-fixing with competitors?
- Shareholders only
- Consumers and the market as a whole (Correct answer)
- Only the employees of the company
- Government regulatory agencies
Correct answer: Consumers and the market as a whole
Price-fixing harms consumers by eliminating competition and artificially raising prices, which is why it is illegal under antitrust laws.
DECA Business Ethics 2
What is the primary purpose of a non-disclosure agreement (NDA) in business ethics?