PRINCIPLES OF
MANAGEMENT
CH 3
2
1- MCQ QUESTIONS
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1. WHAT DOES ETHICS PRIMARILY FOCUS ON?
• A) Legal obligations
• B) Proper relationships between people
• C) Financial profits
• D) None of the above
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2. ETHICAL BEHAVIOR IN BUSINESS IS NECESSARY
TO:
• A) Build a good reputation and attract new customers
• B) Increase government intervention
• C) Avoid compliance with regulations
• D) All of the above
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3. COMPLIANCE BASED ETHICS CODES FOCUS ON:
• A) Promoting a company’s values
• B) Preventing unlawful behavior
• C) Maximizing profits
• D) Encouraging whistleblowing
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4. WHAT DOES INTEGRITY BASED ETHICS FOCUS
ON?
• A) Reducing employee turnover
• B) Increasing corporate philanthropy
• C) Encouraging ethical behavior and accountability
• D) Penalizing wrongdoers
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5. WHICH OF THE FOLLOWING IS A STEP IN
IMPROVING BUSINESS ETHICS?
• A) Enforcing ethics codes
• B) Ignoring customer feedback
• C) Prioritizing profit over ethics
• D) Implementing stricter penalties
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6. WHAT DOES CSR STAND FOR?
• A) Corporate Social Responsibility
• B) Customer Service Rating
• C) Corporate Standards Report
• D) Corporate Sustainability Resource
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7. CORPORATE PHILANTHROPY IS PART OF:
• A) Legal obligations
• B) Social audit
• C) Corporate social responsibility
• D) Profit maximizing strategies
• E) All of the above
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8. WHISTLEBLOWERS ARE:
• A) Government officials
• B) External auditors
• C) Customers who give feedback
• D) Employees who report illegal behavior
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9. WHICH OF THE FOLLOWING ORGANIZATIONS IS
KNOWN FOR ITS HIGH REPUTATION BASED ON
ETHICS?
• A) Facebook
• B) McDonald's
• C) Amazon
• D) Google
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10. CORRUPTION THAT BENEFITS A FEW AT THE
EXPENSE OF MANY IS KNOWN AS:
• A) Petty corruption
• B) Institutional corruption
• C) Grand corruption
• D) Legal corruption
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11. WHICH OF THESE IS NOT A WAY FOR THE
GOVERNMENT TO COMBAT CORRUPTION?
• A) Ignoring the cultural infrastructure
• B) Reforming public sector ethics
• C) Establishing accountable institutions
• D) Monitoring anticorruption performance
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12. THE CORRUPTION PERCEPTION INDEX (CPI)
MEASURES:
• A) Economic performance of countries
• B) Corruption in public officials and politicians
• C) Company performance on ethics
• D) Government spending on anticorruption
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13. WHICH OF THE FOLLOWING IS NOT A BENEFIT
OF MANAGING A BUSINESS ETHICALLY?
• A) Maintaining a good reputation
• B) Attracting lawsuits
• C) Avoiding government intervention
• D) Reducing employee turnover
• E) All of the above
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14. WHAT IS THE MAIN DIFFERENCE BETWEEN
ETHICS AND LEGALITY?
• A) Legality involves individual values
• B) Ethics is about societal standards, legality is about laws
• C) Ethics is narrower in scope than legality
• D) Ethics is enforceable by law
• E) All of the above
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15. IN THE CORRUPTION EQUATION, C = M + D – A,
'A' STANDS FOR:
• A) Accountability
• B) Authority
• C) Action
• D) Alignment
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16. ACCORDING TO THE TEXT, ETHICAL BEHAVIOR
BEGINS WITH ______.
• A) Top corporate leaders
• B) Government regulations and laws
• C) Religious and community leaders
• D) Ourselves
• E) None of the above
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17. IF YOUR SUPERVISOR DIRECTED YOU TO ENTER INFORMATION
INTO A SALES ORDER BOOK AND TOLD YOU IF YOU REFUSED THAT
YOU WOULD LOSE YOUR OPPORTUNITY FOR PROMOTION, YOU
WOULD PROBABLY CONSIDER THIS SITUATION TO BE A(N) ____________.
• A) Important act of self-interest
• B) Ethical dilemma
• C) Win win situation
• D) Corporate accountability issue
18. AHMED IS A SALESPERSON IN ABAYA COMPANY. HIS COLLEAGUE, SAMIR, 20DID
NOT COME TO WORK TODAY WITHOUT TAKING THE MANAGER’S PERMISSION AND
ASKED HIM TO COVER UP FOR HIM. THE FIRST THING THAT CAME TO AHMED’S
MIND WHEN MAKING HIS DECISION REGARDING HIS COLLEAGUE'S REQUEST WAS:
IT IS AGAINST THE COMPANY’S POLICY. THIS EXAMPLE PERTAINS TO ______
QUESTION THAT WE MUST ASK WHEN FACED WITH AN ETHICAL DILEMMA.
• A) Is it legal?
• B) Is it balanced?
• C) How will it make me feel about myself?
• D) How can my decision help elevate my own status within the firm?
19. AHMED, THEN, CONSIDERED THAT IT WOULD NOT BE
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FAIR FOR THE REST OF THE EMPLOYEES AND TO THE
ORGANIZATION TO COVER UP FOR SAMIR. THIS RELATES
TO ______ QUESTION THAT WE MUST ASK WHEN FACED WITH
AN ETHICAL DILEMMA.
• A) Is it legal?
• B) Is it balanced?
• C) How will it make me feel about myself?
• D) How can my decision help elevate my own status within the
firm?
• E) All of the above
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20. WHICH OF THE FOLLOWING IS A REASON FOR A
BUSINESS TO BE MANAGED ETHICALLY?
• A) An ethically managed business helps to reduce employee
turnover
• B) To avoid lawsuits
• C) To avoid government intervention
• D) To keep existing customers and to attract new customers
• E) All of the above
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2- T/F QUESTIONS
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1. ETHICS ONLY APPLIES TO THE LEGAL ASPECTS
OF BUSINESS.
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2. CORPORATE SOCIAL RESPONSIBILITY GOES
BEYOND LEGAL REQUIREMENTS.
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3. COMPLIANCE BASED ETHICS CODES FOCUS ON
PUNISHMENT TO PREVENT WRONGDOING.
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4. INTEGRITY BASED ETHICS CODES EMPHASIZE
SHARED ACCOUNTABILITY AND VALUES.
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5. A SOCIAL AUDIT IS CONDUCTED BY EXTERNAL
REGULATORS ONLY.
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6. CORPORATE PHILANTHROPY CAN INCLUDE
HIRING MINORITY WORKERS, MAKING SAFE
PRODUCTS, AND MINIMIZING POLLUTION.
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7. THE CORRUPTION PERCEPTION INDEX MEASURES
CORPORATE SOCIAL RESPONSIBILITY.
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8. WHISTLEBLOWERS REPORT UNETHICAL OR
ILLEGAL BEHAVIOR IN A COMPANY.
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9. GRAND CORRUPTION TYPICALLY INVOLVES
LOWER-LEVEL OFFICIALS.
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10. A COMPANY’S REPUTATION CAN BE AFFECTED
BY ITS ETHICAL BEHAVIOR.
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11. LEGAL BEHAVIOR AND ETHICAL BEHAVIOR ARE
BASICALLY THE SAME.
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12. AHMED AND HIS FRIENDS WENT OUT TO A
RESTAURANT, AND ONE OF HIS FRIENDS TOOK THE SALT
AND PEPPER SHAKERS FROM THE TABLE. IN THIS
SITUATION, THIS WAS AN ETHICAL ACTION BECAUSE IT
WAS A RESTAURANT, AND ITS POTENTIAL LOSS WILL BE
COVERED BY ITS PROFITS.
13. TRYING TO MAKE DECISIONS THAT WILL 36
BENEFIT ALL PARTIES INVOLVED IS CONSISTENT
WITH THE QUESTION “HOW WILL IT MAKE ME FEEL
ABOUT MYSELF?”
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14. INTEGRITY BASED ETHICS CODES ARE BASED
ON AVOIDING LEGAL PUNISHMENT.
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15. PEOPLE WHO REPORT ILLEGAL OR UNETHICAL
BEHAVIOR ARE CALLED WATCHDOGS.
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16. AN ORGANIZATION’S CODE OF ETHICS SHOULD
BE KEPT INHOUSE AND NOT COMMUNICATED TO
OUTSIDERS.
THANK
YOU
