Business Ethics Multiple Choice and
True/False Questions
Multiple Choice Questions
1. In general, brokers, insurance agents, and other salespeople have an obligation to
recommend only suitable securities and financial products. Which of the following is NOT
typically one of the most common causes of unsuitability are?
Answer: e) unsuitable investment advisor
2. There are several points to observe in the definition of whistle-blowing. Which of the
following is not a factor?
Answer: e) It must be released to the outside/external public
3. A well-designed whistle-blowing policy should include which of the following
components?
Answer: a) An Effectively Communicated Statement of Responsibility
4. Which of the following is a more justifiable motive for whistle-blowing?
Answer: b) To stage a moral protest
5. Which of the following is not an example of a trade secret?
Answer: d) The marketing team of a company
6. Congress made trade secrets a federal offense under which act?
Answer: b) The Economic Espionage Act of 1996
7. The following are considered to be intellectual property by law EXCEPT:
Answer: d) Business Intelligence
8. Which of the following is not considered a category of business information?
Answer: e) All options are correct
9. Based on Utilitarian view, the reasons for companies holding property rights would not
include:
Answer: e) Trade secrets permit information monopolization.
10. Which of the following would not need to be considered when making the case for a
right to privacy in employee records?
Answer: e) the duration of your employment with the company
11. Which of the following is not a typical form of discrimination?
Answer: e) Dietary preferences
12. Which of the following is the best definition of sexual harassment?
Answer: a) Improper sexual conduct in the workplace which includes lewd and suggestive
comments, touching and fondling
13. Sexual Harassment is sexual advances, requests for sexual favors, and/or other verbal,
visual, or physical conduct of a sexual nature.
Answer: d) unwelcome
14. Which of the following is a form of sexual harassment?
Answer: a) Quid Pro Quo Harassment
15. Which of the following could best be considered a deception in sales?
Answer: d) when an insurance sales agent convinces to buy additional services that you
may not need
16. The idea of caveat emptor... (unclear wording but most matching option)
Answer: b) Caveat emptor, Buyer beware, Regulation, National
17. Which among the following price-related issues are associated with consumer rights?
Answer: a) price fixing
18. Which of the following concepts are considered ethical concepts in marketing?
Answer: a) fairness, justice & care
19. The definition of bribery is best captured as.
Answer: a) making payment for influencing any decision or action taken by the foreign
official in his official position, or compelling the official to take any action that is contrary to
his or her legal obligations
True or False Questions
26. Price gouging occurs when a company charges more than governments perceive is fair
for their offerings.
Answer: a) True
27. The term used when the true cost of an item is deliberately obscured by a company this
is known as price fixing.
Answer: b) False
28. Price skimming is charging various buyers a different price for the same items, sellers
provide preferential treatment. The preferred treatment is not determined by the
transactional expenses
Answer: b) False
29. Deception is the act of a broker with authority over a client's account engaging in
excessive or improper trading with the goal of earning commissions rather than the client's
profit
Answer: a) True
30. Hostile Work Environment is considered a form of sex discrimination.
Answer: a) True
31. Causing capital flight is an economic cost of bribery.
Answer: a) True
