Tag: organization of commerce and management

Questions Related to organization of commerce and management

__________ also serves to inform employees of the vision that the company's executives have for the company's image and goals.

concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

  1. Customer feedback

  2. Code of ethics

  3. Ethics coach

  4. Mission

Show answer
Correct Option: B
Explanation:
A code of ethics should reflect top management's desire for compliance with the values, rules, and policies that support an ethical climate. The development of a code of ethics should involve the Board of Directors, and Chief Executive Officers who should be implementing the code.
Legal staff should also ensure that the code has assessed key areas of risk correctly, and that it provides buffers for potential legal problems. 
The code of ethics outlines a set of fundamental principles which could be used as the basis for operational requirements (things one must do), operational prohibitions (things one must not do). It is based on a set of core principles and values and is by no means designed for convenience. The
employees subjected to the code are required to understand, internalize, and apply it to situations which the code does not specifically address.

Business must first be responsible to __________.

concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

  1. employees

  2. customers

  3. owners

  4. bankers

Show answer
Correct Option: B
Explanation:

Customer satisfaction is a vital factor in successful business strategy. An organization with a strong ethical environment places its customer's interest as foremost. As customers are the backbone of any enterprises therefore business must be responsible to its customer.

Spending money on restoring the environment, affected out of products of inherently dangerous nature is considered as part of __________.

concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

  1. business ethics

  2. corporate philanthropy

  3. whistle blowing

  4. corporate leadership.

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Correct Option: A

"Adhering to rules and authority" comes under which scope of ethics?

concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

  1. Ethics in marketing

  2. Ethics in compliance

  3. Ethics in finance

  4. Ethics in production

Show answer
Correct Option: B
Explanation:
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant could be to do the right thing out of the fear of being caught rather than a desire to abide by the law.
An ethical climate in an organisation ensures that compliance with law is fueled by a desire to abide by the laws. Organisations that value high ethical values comply with the laws not only in documents but go beyond what is stipulated or expected of them. 

Mohan joined a company as Chief Finance Officer (CFO). He observes that the company is involved in concealing tax and engaged in other malpractices. He brought this fact to the notice of the Income Tax Authorities. This action of Mohan would be termed as _______.

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  1. cartelisation

  2. misconduct

  3. ethical wrong

  4. whistle blowing

Show answer
Correct Option: D

Sarbanes Oxley Act of $2002$ is named after which of the following experts?

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  1. Aristotle

  2. Smator Paul Sarbanes

  3. Michael Oxley

  4. Both (b) and (c)

Show answer
Correct Option: D
Explanation:

The Sarbanes-Oxley Act, officially named the Public Company Accounting Reform and Investor Protection Act of $2002$, became law on $July\ 30, 2002$. The law was informally named after its sponsors, Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH).

Which of the following ethical issue is related to finance?

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  1. Abusing co-workers

  2. Black mailing

  3. Insider trading

  4. Using of power and abusive language.

Show answer
Correct Option: C
Explanation:

Insider trading is a word that has many definitions and connotations and which includes both legal and illegal activities. 


It can also be described as an insider trading of a company’s stock, securities, bonds and stock options by persons with possible access to non-public information about the company. 

Nevertheless, insider trading can take place lawfully every day, when trading by the corporate insiders such as officers, directors, employees and large shareholders to buy or sell stock in their own companies if this trading will not be taking advantage of the non-public information and also be within the boundaries of the company’s policies and the rules governing this trading. 

However, the term “insider trading" is mostly used to describe a practice in which an insider party trades based on non-public material information gained through the performance of the insider’s obligation at the company, in violation of other relationships of faith and assurance or otherwise when the non-public information was stolen from the company. 

In other words, insider trading is buying, selling or dealing in securities, bonds, and stocks of a company by a director, manager, or employee of the company who has confidential information that is not accessible to the public.

Which of the following statements is not correct?

concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

  1. Ethics pays in long term

  2. Codes of ethics foster ethical, ethical behavior because they expand the opportunity to behave ethically

  3. Ethics is good for company

  4. Without a code of ethics or formal policy on ethics employees are likely to base their peers and superiors behave.

Show answer
Correct Option: B
Explanation:
Ethical conduct is in the long-term interests of businessmen. A business enterprise that is honest and fair to its customers, employees, and other stakeholders earns their trust and goodwill.
It ultimately results in customer    satisfaction, healthy competition, industrial growth and high earnings. 

Businesses must balance their desire to maximize profits against the requirements of stakeholders. 
Maintaining this balance often requires trade offs. To address this unique aspect of business, rules are articulated to guide it to earn profits without harming individuals or society as a whole. 

While referring to business activity profile, Mahatma Gandhi once mentioned that all business entrepreneurs should ask themselves the question whether the activities they are contemplating would be of some use to the common man. This statement emphasizes the importance of nobility of business purpose.

Activity to improve ethical behavior by enacting various legislation is not taken at _________.

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  1. government level

  2. institutional level

  3. industrial level

  4. societal level

Show answer
Correct Option: A
Explanation:
The major problem for implementing effective Codes of Ethics remains that no law or Code will be of much value if individual civil servants lack the technical competence to recognize an ethics problem for what it is, or if they do not know what standards their organization expects of them, or (worst of all), if they consider it to be not in their interests, personally or professionally, to take a stand for integrity and against corruption.

Measures taken to improve ethical behavior at Government Level are

-companies to follow various legislation such as the Minimum Wages Act, Essential Commodities Act etc,
- framing laws and strict penalties if laws do not adhere.
- The government should announce the certain reward for individuals who practice ethical behavior like Indira Gandhi Paryavaran Puraskar
-Using mass media to educate people.

Which of the following action indicate ethical practice on part of business?

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  1. To promote harmful products

  2. To promote corruption

  3. To promote harmless products

  4. To promote alcohol

Show answer
Correct Option: C
Explanation:

Promoting harmful products, corruption and alcohol are not a ethical practice. But promoting harmless product are an ethical activity.