International Commerce Olympiad

1. Making available goods of the right quality to the right people at the right time and place is what kind of a social responsibility?

(a) Responsibility towards workers

(b) Responsibility towards suppliers

(d) Responsibility towards customers

Ans: (d) Responsibility towards customers

2. Which of the following is capable of doing maximum good to society:

(a) Ethics (b) Business success

Ans: (a) Ethics

3. ‘Helping the affected people during floods or earthquakes’ is which kind of

social responsibility:

(a) Economic responsibility (b) Legal responsibility

Ans: (d) Discretionary responsibility]

4. A public utility water company charges below cost rates from consumers citing social responsibility. With the result many people waste water and which consequently results in shortage of this precious resource so vital for human survival. What should the company now do to rectify the situation:

(a) The company should start charging economic rates from the people.

(b) It should not increase its rates otherwise it will not fulfill its social

responsibility.

(d) Both (a) and (c)

Ans: (d) Both (a) and (c)

5. That an enterprise must behave as a good citizen is an example of its responsibility towards:

(a) Owners (b) Workers

Ans: (d) Community

6. Environmental protection can best be done by the efforts of:

(a) Business people (b) Government

Ans: (d) All the people

7. ‘An enterprise must respect the laws of the country and pay taxes regularly and honestly.’ It is the social responsibility of business towards which Interest Group:

(a) Responsibility towards the shareholders or owners.

(b) Responsibility towards the workers.

(d) Responsibility towards the government and community.

Ans: (d) Responsibility towards the government and community.

8. Which of the following is NOT one of the measures that a Business enterprise should take for environmental protection:

(a) Disposing of industrial waste using outdated technology.

(b) Complying with the laws and regulations enacted by the Government for prevention of pollution.

(c) Ensuring that commitment to environmental protection is shared throughout the enterprise by all divisions and employees.

(d) Periodical assessment of pollution control programmes in terms of costs and benefits so as to increase the progress with respect to environmental protection.

Ans: (a) Disposing of industrial waste using outdated technology.

9. ‘Instituting communication systems to help employees report incidents of unethical behavior’ is an example of which of the following elements of Business Ethics:

(a) Involving employees at all levels

(b) Establishment of compliance mechanisms

(d) Measuring Results

Ans: (b) Establishment of compliance mechanisms

10. Which of the following statements is true about the concept of social/Legal responsibility of Business?

(a) Social responsibility is broader than legal responsibility.

(b) Business exists only for profit and has no social responsibility.

(d) Legal responsibility cannot be fulfilled merely by compliance of law.

Ans: (a) Social responsibility is broader than legal responsibility.

11. Giving wrong information in the published annual report of a company, is a violation of social responsibility towards which of the following interest groups:

I. Shareholders or owners. II. Employees

III. Consumers IV. Government and community Select from the following options:

(a) I only (b) I and II only

Ans: (d) I, II, III and IV

12. Rivers in India are getting polluted with discharge of industrial toxic waste in them. Which out of the following measures can the Business houses take to control it?

(a) Dumping of toxic waste underground.

(b) Burning of toxic waste.

(d) Recycling it.

Ans: (d) Recycling it.

13. Which of the following statements is true about Business Ethics?

(a) There is no linkage between individual good and social good.

(b) Ethical behavior is just and fair conduct which goes beyond laws and government regulation.

(c) If company pays less than fair wage to its employees due to competition then it is not unethical since if it pays fair wages it may have to close down.

(d) Company should not have code of ethical behavior in all areas not required by law.

Ans: (b) Ethical behavior is just and fair conduct which goes beyond laws and government regulation.

14. An industrial house runs a hospital and a school as part of its corporate social responsibility. Towards which group is it directed?

(a) Employees (b) Consumers

Ans: (c) Community

15. Which of the following statements is true about Business Ethics?

(a) Business ethics means behaviour of firms which maximize its profits.

(b) Business ethics means behaviour of firms as per prevailing standards of

the society.

(d) Its compliance can be measured with accuracy

Ans: (b) Business ethics means behaviour of firms as per prevailing standards of

the society.

16. Which of the following is the most appropriate statement in the context of environmental protection and business growth?

(a) There should be business growth with environmental protection.

(b) Business growth should be achieved without environmental protection.

(d) There is no relation between business growth and environmental protection.

Ans: (a) There should be business growth with environmental protection.

17. Contributions by companies towards ‘Swach Bharat Kosh and Clean Ganga Fund’ would be considered as social welfare spending under the new company law.’ Towards which interest groups is this measure directed?

(a) Consumers (b) Community

Ans: (b) Community

18. Which of the following correctly describes the meaning of ‘discretionary

responsibility’?

(a) Operation of business within the law of land

(b) Expected behaviour of business towards society

(d) Purchase and sale of goods and rendering services

Ans: (c) Voluntary obligation of business towards society

19. Consider the following Statement and Conclusion:

Statement: There should be balance between economic development and environment protection.

Conclusion: Business should take appropriate steps to ensure that its actions do not contribute towards environmental pollution.

Select from the following options:

(a) The given statement is wrong.

(b) The given conclusion is wrong.

(d) Both statement and conclusion are correct but the conclusion does not follow from the statement

Ans: (c) Both statement and conclusion are correct and the conclusion follows from the statement.

20. The statutory warning given on the pack of cigarette can be categorised as

(a) Business Ethics (b) Social Responsibility

Ans: (c) Legal Responsibility

21. Every businessman is expected to have higher ethical standard because

(a) they are role-models for others.

(b) they have control over society’s resources.

(d) they are social servants.

Ans: (b) they have control over society’s resources.

22. Many telecom companies slashed their ISD call rates substantially after earthquake hit Nepal. This is an example of fulfilling which type of responsibility?

(a) Ethical Responsibility (b) Discretionary Responsibility

Ans: (b) Discretionary Responsibility

23. Which of the following is not a responsibility of business towards community?

(a) Payment of taxes regularly

(b) Ensuring efficient use of societal resources

(d) Helping the weaker sections of the society

Ans: (a) Payment of taxes regularly

24. “We wish to be good citizens of every country in which we operate.” This is a/an:

(a) Political and Social Code (b) Ethical Code

Ans: (b) Ethical Code

25. ‘Arya Ltd.’ in their annual report mention that the company is committed to treat everyone fairly with respect and dignity regardless of differences in position, age, caste, creed, gender or otherwise. It endeavors to foster a participatory a work environment where trust and confidence among everyone is spontaneous.

Identify the interest group towards which the company is fulfilling its social

responsibility:

(a) Employees (b) Government

Ans: (a) Employees

26. Which of the following is not an element of Business Ethics?

(a) Establishment of Compliance Mechanism

(b) Involvement of employees

(d) Advertising to improve goodwill

Ans: (d) Advertising to improve goodwill

27. ‘Aryan Ltd.’ in their board meeting announced that they maintain financial records and follow strict accounting control to ensure effective and efficient utilization of funds, thereby maximizing returns. Identify the interest group towards which the company is fulfilling its social responsibility:

(a) Employees (b) Government

Ans: (d) Investors

28. Buddy Ltd. is a well reputed chain of restaurants in Delhi. The company’s earnings are high as it constantly reviews and revises its menu based on the regular feedback from customers. Considering the fact that in India, many people sleep with empty stomach the company distributes the leftover food to the people on streets.

Which two kinds of social responsibilities are being fulfilled by Buddy Ltd.?

(a) Economic responsibility and Discretionary responsibility

(b) Legal responsibility and Discretionary responsibility

(d) Ethical Responsibility and Legal Responsibility

Ans: (a) Economic responsibility and Discretionary responsibility

29. Anjum Ltd. is a steel manufacturing company. The main motive of the company is to maximize the returns on capital employed. For this, he procures good quality raw material, provides right working conditions to the employees in his factory and gives proper advertisements. Also, he tries to evade taxes by showing less profits in the books of accounts.

Identify the interest group towards whom Anjum Ltd. is not performing his social responsibility?

(a) Workers (b) Consumers

Ans: (c) Government

30. Which one of the following approaches, to create an ethical and socially responsible workplace, is likely to be the most powerful?

(a) Passing out buttons with the statement “Just Say No to Bad Ethics”

(b) Placing posters about ethics throughout the organization

(d) Including a statement about ethics and social responsibility in the employee handbook

Ans: (c) Top management acting as models of the right behavior

31. An Industrial House runs a Hospital and a school as part of its corporate social responsibility. Towards which group it is directed?

(a) Community (c) Employees

(b) Consumers (d) Owners

Ans: (a) Community

32. Fantastic Biscuits Limited drafted a formal written document comprising the principles, values and standards that will guide the employees’ acts. It covered areas such as adherence to laws, product safety and quality, health and safety at workplace, fairness in marketing practices etc. Which concept is being reflected by drafting and publication of this document?

(a) Profit motive (b) Business risk

Ans: (d) Legal responsibility

33. Which of the following constitutes ethical conduct on part of business firms?

(a) The business firms should be fair in their dealings.

(b) They should be trust worthy.

(d) All of above.

Ans: (d) All of above.

34.Identify the two kinds of social responsibilities from the following case: In the recent incident of flood in the State of Kerela, there was huge loss to life and property. The Times of India group invited people to contribute to the welfare of the victims. But the Kerela Government did not advertise for any kind of charity or donation, for they believed in the dignity of people.

(a) Legal and Ethical Responsibility

(b) Ethical and Economical responsibility

(d) Ethical and Discretionary responsibility

Ans: (d) Ethical and Discretionary responsibility

35. Star Bucks believes in ‘Being a Responsible Company’. It is known for its commitment to sustainability and community welfare. Starbucks has achieved CSR milestones such as reaching 99 percent ethically sourced coffee; creating a global network of farmers; pioneering green building throughout its stores; contributing millions of hours of community service; and creating a ground breaking college program for its partner/employees. Going forward, Starbucks’s goals include hiring 10,000 refugees across 75 countries; reducing the environmental impact of its cups; and engaging its employees in environmental leadership.

Identify the reason why Star Bucks is pursuing CSR at such a large scale.

(a) Survival, growth and prosperity of business is possible only through continuous service to society

(b) A society with fewer problems provide better environment for doing business

(d) All of the above

Ans (d) All of the above