Unit 4: Business ethics - Practice Quiz

MGN253 — Human Values And Business Ethics 60 Questions
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1 What does business ethics mainly refer to?

Concept and importance of ethics in management Easy
A. Plans for expanding business locations
B. Rules for preparing financial statements
C. Moral principles guiding business decisions
D. Methods for increasing production speed

2 Why is ethics important in management?

Concept and importance of ethics in management Easy
A. It removes the need for planning
B. It builds trust among stakeholders
C. It eliminates all business risks
D. It guarantees permanent profits

3 Which principle requires managers to be truthful in their dealings?

Concept and importance of ethics in management Easy
A. Honesty
B. Competition
C. Secrecy
D. Profitability

4 What is a likely result of ethical management?

Concept and importance of ethics in management Easy
A. A positive organizational reputation
B. An automatic increase in market share
C. A reduction in every operating cost
D. A complete absence of competition

5 Which is a responsibility of ethical management?

Responsibilities of ethical management Easy
A. Treating stakeholders fairly
B. Favoring personal relationships
C. Hiding important information
D. Ignoring employee complaints

6 What should an ethical manager do when facing a conflict of interest?

Responsibilities of ethical management Easy
A. Transfer the conflict to a coworker
B. Use the conflict for personal gain
C. Hide the conflict
D. Disclose the conflict

7 Which action shows accountability in management?

Responsibilities of ethical management Easy
A. Blaming others for every mistake
B. Refusing to answer questions
C. Accepting responsibility for decisions
D. Avoiding records of decisions

8 Why should ethical managers follow organizational policies?

Responsibilities of ethical management Easy
A. To promote consistent conduct
B. To prevent all employee creativity
C. To avoid communicating with staff
D. To increase personal authority

9 Which is an example of unethical behavior in business?

Unethical behaviour: identification, prevention, and intervention Easy
A. Misusing confidential information
B. Providing accurate product details
C. Respecting customer privacy
D. Following workplace safety rules

10 What is a common warning sign of unethical behavior?

Unethical behaviour: identification, prevention, and intervention Easy
A. Using approved procedures
B. Keeping promises to customers
C. Reporting accurate expenses
D. Falsifying business records

11 Which measure can help prevent unethical behavior?

Unethical behaviour: identification, prevention, and intervention Easy
A. A clear code of conduct
B. Unreported management decisions
C. Unclear job responsibilities
D. Limited employee training

12 What is whistleblowing?

Unethical behaviour: identification, prevention, and intervention Easy
A. Preparing a sales forecast
B. Approving an employee vacation
C. Promoting a new product
D. Reporting suspected wrongdoing

13 What should an employee do after observing serious unethical conduct?

Unethical behaviour: identification, prevention, and intervention Easy
A. Report it through proper channels
B. Join the conduct secretly
C. Share it on social media
D. Ignore it completely

14 What does equal employment opportunity mean?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Giving managers unlimited hiring power
B. Fair treatment in employment decisions
C. Selecting employees based on friendship
D. Hiring only experienced applicants

15 Which HRM practice is unethical?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Using fair selection criteria
B. Protecting employee records
C. Discriminating against job applicants
D. Providing safety training

16 What is ethical marketing?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Providing truthful product information
B. Creating false customer reviews
C. Hiding important product limitations
D. Using pressure to force purchases

17 Which advertising practice is ethical?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Promising impossible results
B. Hiding additional charges
C. Using misleading product images
D. Making claims supported by evidence

18 Why is protecting customer privacy important?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. It removes customer choice
B. It increases unwanted messages
C. It guarantees higher prices
D. It preserves customer trust

19 How should a company respond to a genuine customer complaint?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Ignore the complaint immediately
B. Listen and seek a fair solution
C. Blame the customer publicly
D. Hide the complaint from management

20 Which practice supports ethical customer relationships?

Ethics in HRM, marketing, advertising, and customer relationships Easy
A. Using customer data without consent
B. Changing prices without notice
C. Withholding purchased goods
D. Honoring agreed terms

21 A manager discovers that reporting a production delay will reduce the quarterly bonus but will allow customers to revise their plans. Which action best reflects ethical management?

Concept and importance of ethics in management Medium
A. Describe the delay as a minor issue without changing dates
B. Report the delay only to customers who make inquiries
C. Delay disclosure until the quarterly bonus is calculated
D. Disclose the delay promptly and provide a realistic schedule

22 A company can legally reduce waste-treatment costs by releasing emissions just below the regulatory limit, but nearby residents may still face health risks. What should an ethical manager do?

Concept and importance of ethics in management Medium
A. Continue emissions until residents provide medical evidence
B. Use only the legal limit when evaluating the decision
C. Transfer the decision entirely to the legal department
D. Assess stakeholder harm and adopt safer controls where feasible

23 Two suppliers offer identical prices and quality. One has transparent labor practices, while the other refuses to disclose working conditions. Which selection best supports ethical management?

Concept and importance of ethics in management Medium
A. Choose the secretive supplier to avoid monitoring costs
B. Choose the transparent supplier after verifying its practices
C. Select either supplier because price and quality are identical
D. Divide the order equally without reviewing labor practices

24 After a pricing error, a retailer voluntarily refunds affected customers before receiving complaints. Which benefit of ethical management is most directly demonstrated?

Concept and importance of ethics in management Medium
A. Guaranteed elimination of all future pricing errors
B. Stronger stakeholder trust and long-term reputation
C. Immediate exemption from consumer protection laws
D. Automatic reduction of every operating expense

25 A firm publishes a code of ethics, but employees are rewarded only for meeting sales targets, even when complaints increase. What is management's most important corrective responsibility?

Responsibilities of ethical management Medium
A. Expand the code with more technical definitions
B. Ask customers to resolve complaints with sales staff
C. Remove sales targets from every employee's evaluation
D. Align incentives and evaluations with ethical conduct

26 A senior executive is accused of manipulating expense reports. Which response best demonstrates consistent ethical leadership?

Responsibilities of ethical management Medium
A. Allow the executive's supervisor to settle it privately
B. Issue a general reminder without examining the allegation
C. Postpone action because the executive performs well
D. Apply an impartial investigation and the same standards

27 Employees are uncertain whether accepting gifts from vendors creates a conflict of interest. What should management do first to address the uncertainty?

Responsibilities of ethical management Medium
A. Ban all communication between employees and vendors
B. Let each department create unwritten rules independently
C. Establish clear guidance with examples and reporting channels
D. Permit gifts whenever no employee submits a complaint

28 A manager learns that a profitable contractor repeatedly violates workplace safety standards. Which response best balances managerial responsibilities?

Responsibilities of ethical management Medium
A. Require corrective action and suspend work if risks continue
B. Retain the contractor because its prices benefit shareholders
C. Ignore the violations because contractors manage their workers
D. Wait for a serious accident before reviewing the agreement

29 An employee consistently approves invoices from a company owned by a close relative without disclosing the relationship. What ethical issue should be identified?

Unethical behaviour: identification, prevention, and intervention Medium
A. A lawful method of supplier diversification
B. An acceptable form of employee networking
C. A routine delegation of purchasing authority
D. An undisclosed conflict of interest

30 Several employees avoid reporting misconduct because previous whistleblowers were excluded from projects. Which preventive measure would most directly address this problem?

Unethical behaviour: identification, prevention, and intervention Medium
A. Reward teams only when they submit no complaints
B. Limit misconduct reports to senior management members
C. Enforce anti-retaliation rules and confidential reporting
D. Require all reports to be made publicly at meetings

31 An internal audit finds that one supervisor has repeatedly altered employee overtime records. What is the most appropriate initial intervention?

Unethical behaviour: identification, prevention, and intervention Medium
A. Publicly accuse the supervisor before reviewing records
B. Delete the altered records and issue new timesheets
C. Transfer the supervisor without documenting the concern
D. Preserve evidence and begin an impartial investigation

32 A sales team regularly records future orders as current revenue because its bonus depends on quarterly results. Which control would best prevent recurrence?

Unethical behaviour: identification, prevention, and intervention Medium
A. Replace quarterly targets with larger monthly targets
B. Separate revenue approval from sales bonus calculations
C. Stop reviewing revenue after bonuses have been paid
D. Allow sales staff to approve their own revenue entries

33 A manager notices that minor policy violations are increasing, although no major misconduct has yet occurred. What is the best preventive response?

Unethical behaviour: identification, prevention, and intervention Medium
A. Remove the policy because employees frequently violate it
B. Address the pattern through guidance, monitoring, and proportionate action
C. Dismiss the entire team without examining individual conduct
D. Ignore the pattern until a major financial loss occurs

34 A recruiter removes applicants' names, photographs, ages, and addresses before initial screening. Which ethical HRM objective does this practice primarily support?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Guaranteeing promotion after recruitment
B. Reducing bias in candidate evaluation
C. Eliminating the need for job criteria
D. Increasing access to applicants' personal data

35 An HR manager learns that a high-performing supervisor gives desirable shifts only to employees who socialize with them outside work. What is the most ethical response?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Accept the practice because team relationships affect morale
B. Review shift decisions using transparent job-related criteria
C. Give the supervisor complete control over future schedules
D. Rotate all shifts randomly without considering operational needs

36 A beverage advertisement states that the product "boosts immunity," although the company has no reliable evidence for the claim. What should the marketing manager do?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Use the claim only in markets with limited enforcement
B. Remove or revise the claim until evidence supports it
C. Add brighter packaging to distract from the wording
D. Keep the claim because competitors use similar wording

37 An online store displays a low initial price but adds unavoidable service fees only on the final payment screen. Which change best improves ethical marketing?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Show the fees only in the website's legal terms
B. Waive the fees only for customers who complain
C. Keep the fees hidden but shorten the payment process
D. Display the total mandatory price before checkout begins

38 A company wants to use customers' purchase histories for a new targeted advertising program that was not mentioned when the data was collected. What is the most ethical approach?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Sell the data after removing customers' first names
B. Launch the program and explain it after complaints
C. Obtain meaningful consent before using the data
D. Use the data because the company already stores it

39 A customer reports that a safety defect damaged a product but caused no injury. Which response best supports an ethical customer relationship?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Reject the report because no physical injury occurred
B. Investigate promptly, offer a remedy, and assess wider risk
C. Offer a discount only if the customer removes the complaint
D. Refer the customer repeatedly between service departments

40 A company advertises a subscription as "cancel anytime," but cancellation requires several hidden steps and a telephone call during limited hours. Which principle is most clearly violated?

Ethics in HRM, marketing, advertising, and customer relationships Medium
A. Fairness and transparency in customer relationships
B. Objectivity in selecting job applicants
C. Confidentiality in employee performance reviews
D. Independence in approving supplier invoices

41 A manager must choose between a legally permissible supplier offering the lowest price and a slightly more expensive supplier whose labor and environmental practices are independently verifiable. Which decision best reflects the strategic importance of ethics in management?

Concept and importance of ethics in management Hard
A. Delay the decision until competitors reveal their supplier choices
B. Choose either supplier because procurement decisions are ethically neutral
C. Choose the lowest-cost supplier because legality defines managerial responsibility
D. Choose the verified supplier because ethical risk can affect long-term organizational value

42 A company publicly claims that it values transparency, but senior managers routinely withhold unfavorable performance data from employees and investors. Which ethical principle is most directly violated?

Concept and importance of ethics in management Hard
A. Procedural fairness
B. Organizational loyalty
C. Transparency and truthfulness
D. Managerial efficiency

43 A manager faces pressure to meet quarterly targets by recognizing revenue before the customer has accepted delivery. The practice is not immediately detected and would improve the manager's bonus. What is the strongest ethical objection?

Concept and importance of ethics in management Hard
A. It may require additional accounting documentation
B. It shifts risk and information asymmetrically to stakeholders
C. It could make the quarterly report less attractive
D. It may reduce the manager's future promotion prospects

44 A board discovers that a profitable product creates a low-probability risk of severe consumer injury. Which response best satisfies ethical management responsibilities?

Responsibilities of ethical management Hard
A. Assess the risk, disclose relevant information, and reduce preventable harm
B. Transfer liability through a stronger warranty disclaimer
C. Withdraw the product only if regulators issue a formal order
D. Continue sales because the probability of harm is small

45 An organization wants its ethics program to influence actual decisions rather than serve as symbolic compliance. Which design is most effective?

Responsibilities of ethical management Hard
A. Publish a detailed code and distribute it annually
B. Align incentives, controls, leadership conduct, reporting, and accountability
C. Appoint an ethics officer without changing incentives
D. Require employees to sign a statement accepting personal responsibility

46 A manager learns that a high-performing executive has harassed several employees, but the victims fear retaliation. What is the most responsible managerial action?

Responsibilities of ethical management Hard
A. Initiate an impartial investigation with protection against retaliation
B. Privately warn the executive and monitor future behavior
C. Move the complainants to other teams to reduce conflict
D. Wait for a formal complaint because informal reports are incomplete

47 A sales division repeatedly reports unusually high customer cancellations after commissions are paid. Which control would best help identify the underlying unethical behavior?

Unethical behaviour: identification, prevention, and intervention Hard
A. Ask sales managers whether their teams follow policy
B. Compare commission timing with cancellations and customer complaints
C. Increase sales targets for the next quarter
D. Reward only employees who exceed their monthly quotas

48 Employees report that a supervisor pressures them to bypass safety checks, but the organization has no evidence of an actual accident. Which interpretation is most appropriate?

Unethical behaviour: identification, prevention, and intervention Hard
A. Employees should resolve the matter privately before management acts
B. The pressure is an early warning requiring investigation and intervention
C. No misconduct exists until measurable harm occurs
D. The issue is only operational because safety rules are not ethical standards

49 A whistleblower submits evidence of procurement fraud but is also involved in a separate attendance violation. How should the organization respond?

Unethical behaviour: identification, prevention, and intervention Hard
A. Discipline the whistleblower first and postpone the fraud investigation
B. Dismiss the fraud report because the whistleblower lacks credibility
C. Ignore the attendance issue to preserve the whistleblower's cooperation
D. Investigate both matters independently using consistent procedures

50 A compliance system receives many reports but almost no substantiated findings. Which conclusion is most defensible?

Unethical behaviour: identification, prevention, and intervention Hard
A. The reporting system is necessarily ineffective
B. The organization should raise the evidence threshold before opening investigations
C. The organization should assess report quality, investigation standards, and deterrence effects
D. Employees are probably abusing the system

51 An applicant screening tool rejects candidates from a protected group at twice the rate of other candidates, although the employer did not intend discrimination. What is the most ethical response?

Ethics in HRM Hard
A. Retain the tool because intent determines ethical responsibility
B. Audit the model, validate job relevance, and correct unjustified disparities
C. Keep the tool confidential so applicants cannot challenge its results
D. Remove all selection criteria to eliminate potential bias

52 A company uses employee productivity data collected for scheduling to evaluate eligibility for promotion. What issue should HR examine first?

Ethics in HRM Hard
A. Whether the data are stored on the newest software platform
B. Whether employees were informed about the secondary use and its consequences
C. Whether the data can increase managerial convenience
D. Whether promotion decisions can be made without interviews

53 Two employees have comparable performance, but one receives a promotion after privately entertaining the department head. No explicit promise was made. Which ethical concern is strongest?

Ethics in HRM Hard
A. The event matters only if the other employee files a complaint
B. The employee demonstrated superior networking ability
C. The promotion is valid because no written rule was violated
D. The decision may create favoritism and an apparent conflict of interest

54 During layoffs, management selects employees using a neutral performance score that systematically disadvantages workers who took approved family leave. Which approach is most ethical?

Ethics in HRM Hard
A. Allow each manager to select employees based on personal judgment
B. Review the metric for leave-related bias and use equitable criteria
C. Apply the score because neutral formulas are always fair
D. Exclude all performance information from the process

55 A subscription service advertises a low monthly price but places the mandatory service fee only on the final checkout screen. Which ethical principle is most clearly breached?

Ethics in marketing, advertising, and customer relationships Hard
A. Informed customer choice
B. Internal cost efficiency
C. Product innovation
D. Competitive neutrality

56 A food brand uses a sustainability label based on improvements in one minor ingredient while its overall supply chain remains highly polluting. What is the central ethical problem?

Ethics in marketing, advertising, and customer relationships Hard
A. Consumers are solely responsible for verifying every claim
B. The brand is prohibited from making any environmental claim
C. The label may be technically accurate but materially misleading
D. Environmental performance has no connection to marketing ethics

57 An online retailer uses browsing data to target financially distressed customers with high-cost loans at moments of urgent need. Which assessment is strongest?

Ethics in marketing, advertising, and customer relationships Hard
A. The practice exploits vulnerability through asymmetric information and timing
B. The practice is ethical because targeting improves relevance
C. The practice is acceptable if the advertisements are factually correct
D. The practice is neutral because customers can decline the offer

58 A company discovers that its chatbot routinely denies valid warranty claims because it was trained on incomplete historical decisions. What should it do first?

Ethics in marketing, advertising, and customer relationships Hard
A. Keep the chatbot because automation reduces service costs
B. Delete historical records to prevent future model inconsistencies
C. Suspend or constrain the process, review affected claims, and provide human appeal
D. Require customers to prove that the chatbot made an error

59 A company publishes thousands of positive product reviews generated by employees who do not disclose their relationship with the company. Why is this ethically problematic?

Ethics in marketing, advertising, and customer relationships Hard
A. The practice is acceptable if employees purchased the products themselves
B. Undisclosed advocacy creates a misleading appearance of independent customer support
C. Positive reviews are unethical whenever they increase demand
D. Employees are never allowed to discuss their employer's products

60 A telecom provider makes cancellation deliberately difficult while describing its service as customer-friendly. Which remedy best addresses the ethical failure?

Ethics in marketing, advertising, and customer relationships Hard
A. Disclose that cancellation may require persistence
B. Make cancellation as accessible and clear as enrollment
C. Add more promotional messages before the cancellation page
D. Offer larger discounts to customers who remain subscribed