DECA Business Ethics 3

Question 1

Which federal law was enacted to combat corporate fraud and protect investors following major accounting scandals?

Accepted Answer

Sarbanes-Oxley Act

Answer

The Sarbanes-Oxley Act of 2002 was passed after Enron and WorldCom scandals to establish stricter accounting standards and corporate governance requirements.

Question 2

A business professional using insider information to trade stocks is engaging in:

Accepted Answer

Insider trading, which is illegal and unethical

Answer

Insider trading involves using non-public, material information to gain unfair advantage in stock trading, which is both illegal and a serious ethical violation.

Question 3

What ethical concept requires businesses to be open and honest with stakeholders about their operations and decisions?

Accepted Answer

Transparency

Answer

Transparency requires businesses to openly share information about their practices, performance, and decisions so stakeholders can make informed judgments.

Question 4

Which of the following is an example of ethical sourcing in business?

Accepted Answer

Partnering with suppliers that ensure fair wages and safe working conditions

Answer

Ethical sourcing means selecting suppliers who uphold fair labor practices, safe conditions, and environmental standards throughout the supply chain.

Question 5

In the context of DECA and business ethics, what does 'accountability' mean?

Accepted Answer

Taking responsibility for one's actions and their outcomes

Answer

Accountability means accepting responsibility for your decisions and actions and being answerable to stakeholders for the results.

(DECA) Distributive Education Clubs of America Practice Test

(DECA) Distributive Education Clubs of America Practice Test

DECA Business Ethics 3