GOVERNOR ANDRES PASCUAL COLLEGE

1ST PERIODICAL EXAMINATION on BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

12-RIZAL

Name: ____________________________ Score: ________________________

Date: _____________________ ________ Teacher: Ms. Joabmarel Sinai D. Garcia

I. Multiple Choice: Encircle the letter of your answer.

1. Ethics are the standards of conduct by which one’s action are judged as ___________________.
a. right or wrong c. fair or unfair
b. honest or dishonest d. all of these.
2. The proprietorship form of business organization ___________________________________.
a. must have at least three owners in most states
b. represents the largest number of businesses in the United states
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.
3. The partnership form of business organization _____________________.
a. is a separate legal entity c. enjoys an unlimited life
b. is a common form of organization for service type business d. has limited liability
4. A business organized as a corporation ________________________________.
a. is not a separate legal entity in most states c. is owned by its stockholders
b. requires that stockholders be personally liable for the d. terminates when one of its original
debts of the business stockholder dies.
5. Which of the following is NOT an advantage of the corporate form of business organization?
a. Limited liability of stockholders c. Unlimited personal liability for stockholders
b. Transferability of ownership d. Unlimited life
6. 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
7. What percentage of the world’s population lives in absolute poverty?
a. 2% c. 25%
b. 10% d. 50%
8. The total population in developing countries as of 2000 was 5.2 billion. Of this, how many people live on less than
2 dollars a day?
a. 300 million c. 1.2 billion
b. 800 million d. 2.8 billion
9. Out of the world’s population living in extreme poverty (less than 2 dollars per day how many are women?
a. 15% c. 50%
b. 30% d. 70%
10. In which country do 35.5 million people-one child in four-live below the poverty line?
a. Zambia c. Russia
b. Cambodia d. United States
11. How much do the rich countries give to the much poorer ones?
a. nothing c. 3,000 million dollars
b. 210 million dollars d. 340,000 million dollars
12. Who said: “Whenever you are in doubt or when the self becomes too much. Apply the following test: Recall the
face of the poorest and weakest, am you have seen and ask yourself if the step you contemplate is going to be any
use of him. Will he gain anything by it? Will it restore him to a control over his own life and destiny? Then will you
find your doubts and yourself melting away.”
a. Mahatma Gandhi c. Nelson Mandela
b. Mohammed Yunus d. President Suharto
13. Which of the following does transparency imply?
a. Accountability c. Communication
b. Openness d. All of these answer
14. 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.
15. What is the term which describes the opportunity for shareholders and potential investors to openly observe
companies financial transactions?
a. Code of ethics c. Transparency
b. Social audit d. Philanthropy
16. 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.
17. Which of the following occurs when an individual or organization is involved in multiple interests, one which
could possibly corrupt the motivation for an act in the other?
a. Impropriety c. Conflict of interest
b. Multitasking d. Ethical lapse
18. 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
19. 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 c. A rigid concept
b. A fallacy d. An inappropriate guide
20. What type of companies do individuals tend 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 an unethical way
d. Ones which disregard environmental responsibility

II. Identification: Write your answer on the space provided.

_____________21. The quality of making judgments that are free from discrimination or free from bias
_____________22. A lack of honesty or integrity; using a position of trust or authority to receive favors,
often financial bribes.
_____________23. Any person, company or other institution that owns at least 1 share of a corporation’s
stock.
_____________24. The obligation of a business to contribute to the well being of a community.
_____________25. It occurs when a person takes advantage of a situation or piece of information for his or
her own gain rather than for the employer’s interest.
_____________26. A statement of rules for guiding the behaviour of employees or members of
organization
_____________27. Rules about how businesses and the organizational members should behave.
_____________28. Principles of morality or rules of Conduct.
_____________29. A business organization in which two or more individuals manage and operate the
business.
_____________30. The willingness of one person or group to have faith or confidence in the goodwill of
another person, even though this puts them at risk.
______________ 31. Characterized as the buying or selling of shares of stock on the basis of information
known only to the trader.
______________33. Is the act, for an employee (or former employee) of disclosing what he believes to be
unethical or illegal behavior to higher management.
______________33. A decree instituting a labor code there revising and consolidating labor and social laws to afford
protection to labor, promote employment and human resources development and insure
industrial peace based on social justice.
______________34. Conceptualized as a deficiency or shortage of some sort.
______________35. Give one example of stakeholder aside from shareholder.

Partnership Insider Trading Social Responsibility Poverty Trust

Ethics Code of Ethics Shareholder PD no. 442 Conflict of Interest
Business Ethics Employees Corruption Whistle blowing Fairness
III. Enumeration:

36-40 SAUSER and SIMS’ suggestions for creating code of ethics in business organization:

41-43. Three forms of business:

44-46. At least three main reasons that may persuade a business to act ethically:

IV. Essay (4pts)

47-50. Why do we need an ethical organizational culture?