Name: ____________________________ Date:________________
Year & Section: ____________________ Score : ______________
UNIT TEST IN BUSINESS ETHICS
I. Multiple- choice: Circle the letter of the correct answer.
1. Ethics are the standards of conduct by which one’s actions are judged as _____________.
a. Right or wrong b. honest or dishonest c. right or unfair d. all of these
1. The proprietorship form of business organization ____________.
a. Must have at least three owners in most states
b. Represents the largest number of businesses
c. Combines the records of the business with the personal records of the owner.
d. Is characterized by a legal distinction between the business as an economic unit and the owner.
1. The partnership form of business organization _________.
a. Is a separate legal entity
b. Is a common form of organization for service-type businesses
c. Enjoys an unlimited life
d. Has limited liability
1. A business organized as a corporation
a. Is not a separate legal entity in most states
b. Requires that stockholders be personally liable for the debts of the business
c. Is owned by its stockholders
d. Terminates when one of its original stockholders dies
1. Which of the following is not an advantage of the corporate form of business organization?
a. Limited liability of stockholders
b. Transferability of ownership
c. Unlimited personal liability for stockholders.
d. Unlimited life.
1. A small neighbourhood barber shop that is operated by its owner would likely be organized as a _____.
a. Joint venture c. corporation
b. Partnership d. proprietorship
1. Joan and Sara met at law school and decide to start a small law practice after graduation. They agree to split revenues
and expenses evenly. The most common form of business organization for a business such as this would be a _____?
a. Joint venture b. partnership c. corporation d. proprietorship
1. Some business professionals believe that philanthropic concerns are secondary to creating profits. This reflects a
concern for________?.
a. Customers b. Investors c. Employees d. Society
1. When the actions of management appear indifferent or insensitive to ethical concerns, the effect is often ___.
a. Reduced employee turnover c. Reduced lawsuits
b. Improved manager morale d. Mistrust between workers and management
1. Consumers want a firm’ s ethical behavior to ____.
a. Covers less than what is within the legal limits of the law
b. Only stay focused on creating profits
c. Go beyond the legal limits of the law
d. Be less demanding of employee
1. 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. Philantropy
1. Which of the following is the best explanation of 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.
1. 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 c. conflict of interest
b. Multitasking d. ethical lapse
