Rosemont Hills Montessori College

www.rosemonthills.com

BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Midterm Examination
(Pre-College Department)
SY 2019-2020

NAME:________________________________________ STRAND/YEAR: _________________________

I. Read each item carefully, and then encircle the letter of the correct answer. (STRICTLY NO ERASURES)

1. Which of the following statements is true about sole proprietorship?

a. The owner has complete control over the company’s finances and operations.
b. They are required to consult anyone when it comes to making decisions.
c. It consists of two or more people as partners.
d. Sole proprietorship can’t maintain complete control over all aspects of the business.

2. The following are characteristics that distinguish a corporation from proprietorship and partnership, except:

a. The corporation is subject to numerous government regulations.

b. Transferable ownership rights.
c. The stockholders have limited liability.
d. The stockholders are not required to pay taxes on the dividends they receive.

3. What is the role of business organization in the economy?

a. Combines the skills and resources of more than one person.

b. Can obtain large amounts of resources by issuing stock
c. It provides jobs that allow people to make money and goods and services that people can buy with the money they
make.
d. Individuals share their profits and liabilities.

4. The following are the minimum competencies expected of professionals, except:

a. Technical skills b. Competitive c. Human Skills d. Conceptual Skills

5. What is the term which describes the opportunity for shareholders and potential investors to openly observe
companies’ financial transactions?

a. Code of Ethics b. Social Audit c. Transparency d. Philanthropy

6. It is sometimes difficult to determine in the moment what is ethical and what is not because the idea of ethics
is____________.

a. a dynamic concept b. a fallacy d. a rigid concept d. an inappropriate guide

7. What type of individuals tends to want to work for?

a. ones in which ethical dilemmas are minimized

b. ones which display no ethical track record
c. ones in which there are pressures to act in unethical way
d. ones which disregard environmental responsibility

8. What is a corporate ethics statement?

a. a detailed policy, containing specific behavioural requirements

b. an agreement signed by employees stating that they will abide by the company’s rules of conduct
c. an exhortation in broad, highly generalized language
d. a seminar regarding business conduct

9. What does open communication allow?

a. opinions and ideas

b. an excess of knowledge
c. science, engineering, business, and the humanities
d. the possibility of self- correction and group problem- solving

10. Which of the following is the best explanation of radical transparency?

a. The concept of removing all barriers to – and the facilitation of- free and easy public access to corporate information.
b. A concept leading to better decision- making and faster error correction.
c. A management method where nearly all decision- making is carried out publicly.
d. Operating in such a way that it is easy for others to see what actions are performed.

11. Which of the following is the best explanation of corporate transparency?

a. Operating in such a way that it is easy for others to see what actions are performed
b. The concept of removing all barriers to- and the facilitation of- free and easy public access to corporate information
c. A concept leading to better decision- making and faster error correction
d. A management method where nearly all decision- making is carried out publicly.

12. Which of the following occurs when an individual or organization is involved in multiple interests, one of which could
possibly corrupt the motivation for an act in the other?

a. impropriety b. multitasking c. conflict of interest d. ethical lapse

13. Which of the following does transparency imply?

a. accountability b. openness c. communication d. all of these answers

14. How can a corporate code of ethics help a company to be ethical?

a. It informs workers behaviour and prevents behaviour that does not fall in line with the company’s mission and greater
objectives.
b. Establish a process for reporting violations of ethical standards and actively investigate all reported violations.
c. Communicate the standards of conduct widely throughout the organization and the industry.
d. Assure due diligence by the organization’s board of directors.

15. With respect to ethics, managers are responsible for

a. creating a work environment that helps the organization achieve its objectives and fulfill its responsibilities.
b. encouraging employees to engage in activities that they might otherwise view as unethical.
c. providing vague supervision on ethical issues to avoid overly influencing employees.
d. offering no ethical direction to employees to create opportunities for individual ethics.

16. Article 108 of the Consumer Act of the Philippines (Republic Act No. 7394) declares that?

a. “The state shall protect the consumer from misleading advertisements and fraudulent sales promotion practices”
b. “The state shall adopt measures designed to protect the consumer against substances other than food, drugs,
cosmetics and devices that are hazardous to his health and safety.
c. “The state shall promote and encourage fair, honest and equitable relations among parties in consumer transactions
and protect the consumer against deceptive, unfair and unconscionable sales acts or practices.”
d. “ The state shall enforce compulsory labelling, and fair packaging to enable the consumer to obtain accurate
information as to the nature, quality and quantity of the contents of consumer products and to facilitate his comparison
of the value of such products.”

17. Is an act for an employee, of disclosing what he believes to be unethical or illegal behaviour to higher management
or to an external authority or the public.

a. Insider Trading b. Whistle Blowing c. Morality d. Ethical Attention

18. How do the terms business ethics and social responsibility differ from each other?
 a. Business ethics concerns the impact of the entire business's activities on society, whereas social responsibility relates
to an individual's decisions that society evaluates as right or wrong.
b. Business ethics concerns the impact of the entire business's activities on society, whereas social responsibility relates
to a work group's decisions that society evaluates as right or wrong.
c. Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas
social responsibility concerns the impact of the entire business's activities on society.
d. Business ethics and social responsibility can be used interchangeably because they mean the same thing

19. Which of the following refers to the duty of a business to contribute to the well-being of a community?

a. workplace diversity b. social responsibility c. laws and regulations d. code of ethics

20. What is not something you ask yourself when faced with an ethical dilemma?

a. Is it legal? Will I go to jail? b. What’s in it for me?

c. Is it against school/ company policy? d. How will others be affected by my actions?

II. TRUE OR FALSE: Write TRUE if the statement is correct, if false, underline the word/phrase which makes
the statement incorrect. And then change the underlined word/phrase to make the statement correct.
Write your answers on the space provided before each number. (STRICTLY NO ERASURES)

______________1. Professional group such as doctors, lawyers and teachers have their own code of ethics.
______________2. Business ethics is the application of standards for moral reasoning to business dilemmas.
______________3.Company’s trained managers about the legal framework for unequal employment
opportunity and encourage fair treatment of all people regardless of their demographic
characteristics.
______________4. When huge corporate scandals began to proliferate, companies began creating black propaganda.
______________5. An organization is an activity that is part and parcel of human society.
______________6. The owner of a corporation has the complete control over the company’s finances and operations.
______________7. Business plays a minor role in keeping the economy alive.
______________8. A culture of character is the type of organizational culture in which positive moral values are
ingrained throughout the organization.
______________ 9. A lack of business ethics can result in a lack of business goodwill.
______________10. It is possible for someone’s action to be legal yet still unethical.
______________11. Business ethics are the application of right and wrong, good and bad decisions an employee
makes within a business setting.
______________12. A company’s accountability structures described the preferred behaviour of the firm in its
business operation. It typically flows from the corporate culture.
______________13.The business model used to become a socially responsible company includes proactive
contributions, community reinvestments, and understanding the needs of customers.
______________14. Conceptual skills encompass the ability to apply specialized knowledge or expertise.
______________15. Transparency is the ability to account for your actions and performance to your stakeholders.

III. ESSAY.

1. What are the three Various Forms of Business Organization, define each forms based on how you understand it in the
lesson. Give at least two examples in each business organization.
2. Define the terms competence, professionalism, and responsibility. Why do you need to be competent in your job?
Explain the basic skills needed in the workplace.

Prepared by:

CHERRIELYN H. LAWAS

Checked by:

HANS DE BARRAS, M.Ed

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