2. Which of the following aspects of an organization helps in building an ethical organization?

  i. The organization's values
  ii. The organization's mission
  iii. Its policies
  iv. Responsibility towards environment

a) Only i
b) ii and iii
c) i, ii and iii
d) All the above

3. Which of the following groups did the Kumaramangalam Birla Committee recommend for deciding a fair remuneration package for the CEO and the executive directors?
a) Boards of directors
b) Remuneration committee
c) Chairman and CEO
d) Stakeholders

4. One of the major ethical dilemma faced by operations managers in the present scenario is
a) Forecasting the future
b) Achieving daily targets in production
c) Quality control
d) Updating to technology innovations

5. According to the principle of ethical remuneration, in which of the following situations can seniority and loyalty be considered as factors in determining rewards?

  i. When their contribution increases owner value
  ii. When senior employees are loyal to the organization
  iii. When seniors employees have considerable experience
  iv. When senior employees forego rewards during a financial crunch

a) i & iii
b) ii & iii
c) i & iv
d) ii & iv

6. The bidding technique (in a takeover) in which the first 51% of the shareholders who tender their shares for a premium over the prevailing market price and the remaining 49% receive only promissory notes for the tender amount is referred to as a
a) Management buyout
b) Two-tier tender office
c) Management buy-in
d) Greenmail

7. In which of the following countries is bribery considered unethical and illegal under the Foreign Corruption Practices Act (FCPA)?
a) Japan
b) China
c) America
d) Germany

8. Which of the following theories supports a contract under which one or more persons engage another person to perform a service on their behalf?
a) Stewardship theory
b) Agency theory
c) Mc Gregor's theory Y
d) Mc Gregor's theory X

9. Which of the following is a feature of the German model of corporate governance?

a) Shareholders role being performed by elected Board of Directors
b) High rate of worker participation in the governance mechanism
c) Crucial role of financial institutions in governance mechanism
d) Representatives of shareholders and employees participate in the governance mechanism

10. According to companies act which of the following factor (s) can board of directors can be held liable for?

a) Misrepresentation in offer documents
b) When funds of investors are not repayed by due date
c) When laws are contravened
d) All the above

11. Right, equitable, good, proper, fair and just are the key aspects of:
a) Ethical decisions taken in overt ethical situations
b) Ethical decisions taken in covert ethical situations
c) Ideal decision virtues
d) Business Ethics

12. Which of the following statements best explains the difference between ethics and morality?
a) Ethics refers to standards of behavior whereas morality refers to system of beliefs
b) Ethics refer to system of beliefs whereas morality refers to standards of behavior
c) Morality refers to the interrelated beliefs than an single opinion as considered in ethics
d) Morality encompasses the system of beliefs

13. Which of the following organizations closed its old units to prevent pollution?
a) ABB
b) ICI India
c) Tata Iron and steel
d) Indian Aluminum company

14. Who among the following decides the remuneration of a CEO in an organization?
a) Shareholders
b) Board of directors
c) Chairman
d) Government

15. To improve sales, NewIndia marketed its new fax machines as machines which just took five seconds to transmit the documents, but in reality, they took ten seconds to transmit the documents. The marketing manager was in a great dilemma as to why the firm did not have
a) An ethical compliance program
b) A social responsibility initiative
c) Personal ethics training
d) A commitment to marketing

16. The main objective of National Institute of Occupational Safety and Health (NIOSH) which administers the Occupational Safety and Health Act (OSHA) is to
a) Ensure lawful, safe and healthy operations in coal mines
b) Ensure a healthy and safe work environment in the US industries
c) Ensure a safe work environment in the toy industry all over the world
d) Counsel and facilitate rehabilitation of employees who are addicted to drugs and alcohol

17. Which of the following unethical acts can be associated with the purchasing function?
a) Deception
b) Bribery
c) Price rigging
d) All the above

18. An MNC recruits people from its home country for the top posts in its establishment in a foreign country and pays lower salaries to employees who belong to the host country. How would you describe these unethical practices?

  i. Exploitation of host country labor
  ii. Use of expatriate staff for all significant managerial positions
  iii. Failure to implement equal opportunities in the workplace
  iv. Violation of government rules

a) i and ii
b) i and iv
c) i, ii and iii
d) ii, iii and iv

19. Which of the following companies has very strict safety and employment standards for its overseas operations?
a) Levi Strauss
b) Nike
c) Body Shop
d) Hindustan Lever

20. The Cadbury Committee was set up to address the

a) Issue of good corporate governance
b) Financial aspects of corporate governance
c) Problem of deteriorating of values
d) Mal practices in the corporate world

21. An individual from South America believes that it is morally acceptable to pay small bribes to the customs officer to obtain quick clearance of imports. But an individual from the United States finds this practice to be morally unacceptable. This is an example of

a) Ethical subjectivism
b) Ethical relativism
c) Consequentialism
d) Normative ethics

22. Dependability, predictability and faith are the three elements that constitute
a) Values
b) Moral principles
c) Trust
d) Justice

23. To which of the following do a company's statements, credos and code of ethics relate?
a) Values in practice
b) Espoused values
c) Mission of the organization
d) Vision of the organization

24. Which of the following terms refers to the policy statements that define a company's ethical standards?
a) Corporate credo
b) Corporate values
c) Corporate code
d) Corporate governance

25. A fundamental norm or absolute belief which is accepted by an individual determines an individuals
a) Belief
b) Moral standard
c) Ethical stance
d) None of the above