UExcel Business Ethics 2

Question 1

The Sarbanes-Oxley Act (SOX) was enacted primarily to:

Accepted Answer

Increase corporate accountability and protect investors from accounting fraud

Answer

Regulate international trade agreements

Answer

Set minimum wage standards for corporations

Answer

Establish environmental reporting requirements

Question 2

What does stakeholder theory argue?

Accepted Answer

Companies have obligations to all parties affected by their operations, not just shareholders

Answer

Companies should focus solely on shareholder returns

Answer

Only government entities can hold corporations accountable

Answer

Profits are the only measure of business success

Question 3

Which term describes the practice of making misleading environmental claims to appear more eco-friendly?

Accepted Answer

Greenwashing

Answer

Bluewashing

Answer

Whitewashing

Answer

Pinkwashing

Question 4

Insider trading is illegal because it:

Accepted Answer

Gives unfair advantage to those with non-public information, undermining market integrity

Answer

Reduces stock market volatility

Answer

Violates international trade agreements

Answer

Increases transaction costs for all investors

Question 5

What is the 'triple bottom line' in sustainable business practice?

Accepted Answer

People, planet, and profit

Answer

Revenue, operating income, and net profit

Answer

Short-term, medium-term, and long-term profits

Answer

Local, national, and international revenue streams

Question 6

A bribe differs from a legitimate business gift because:

Accepted Answer

A bribe is intended to improperly influence a business decision

Answer

Gifts are tax-deductible while bribes are not

Answer

Gifts must be disclosed to the government

Answer

Bribes can only occur in foreign countries