MCQs on

Business
Ethics
1. OECD in Corporate Governance stands for :
Q.
A. Organisation for Environmental Co-ordination and
Development
B. Organisation for Economic Co-ordination and
Development
C. Organisation for Environmental Co-operation and
Development
D. Organisation for Economic Co-operation and Development

1. कॉरपोरे ट गवर्नेंस में ओईसीडी का अर्थ है :

A. आगेर्नाइजेशर्न फॉर एर्नवायर्नथमेंटल को-ऑर्डथ र्नेशर्न एं ड
डे वलपमेंट
B. आगेर्नाइजेशर्न फॉर इकर्नोर्मक को-ऑर्डथ र्नेशर्न एं ड डे वलपमेंट
C. आगेर्नाइजेशर्न फॉर एर्नवायर्नथमेंटल को-ऑप्रेशर्न एं ड डे वलपमेंट
D. आगेर्नाइजेशर्न फॉर इकोर्नॉर्मक को-ऑप्रेशर्न एं ड डे वलपमेंट
Sol.
Q.
The Organisation for Economic Co-operation and
Development is an intergovernmental economic
organisation with 38 member countries, founded in 1961
to stimulate economic progress and world trade. OECD has
laid down certain principles of better corporate
governance.

Thus, Option D is correct.

2. Which of the following are parts of OECD principles of
Q.
Corporate Governance?
a) The rights of shareholders and key ownership functions
b) The equitable treatment of shareholders
c) Disclosure and transparency
d) The responsibilities of the board
Choose the correct option from those below:
A. c and d only
B. b and c only
C. c only
D. a,b,c and d
2. र्र्नम्नर्लखित में से कौर्न कॉपोरे ट गवर्नेंस के ओईसीडी र्सद्ांतों के
Q.
भाग हैं ?

a) शेयरधारकों और प्रमुि स्वार्मत्व कायों के अर्धकार

b) शेयरधारकों का समार्न व्यवहार
c) प्रकटीकरण और पारदर्शथता
d) बोडथ की र्जम्मेदाररयां

र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्नें:

A. केवल c और d B. केवल b और c
C. केवल c D. a,b,c और d
Sol.
Q.
The six OECD Principles are:
* Ensuring the basis of an effective corporate governance
framework
* The rights of shareholders and key ownership functions
* The equitable treatment of shareholders
* The role of stakeholders in corporate governance
* Disclosure and transparency
* The responsibilities of the board
Thus, Option D is correct.
3. Statement
Q. I: Present primary objective of businesses is profit
maximization
Statement II: Businesses are viewed as sub system to the social system
Choose the correct option from those below:
A. Statement I is correct, Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
कर्र्न I: व्यवसायों का वतथमार्न प्रार्र्मक उद्दे श्य लाभ अर्धकतमकरण है
कर्र्न II: व्यवसाय को सामार्जक प्रणाली की उप प्रणाली के रूप में दे िा जाता है ।
र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्नें:
A. कर्र्न I सही है , कर्र्न II गलत है ।
B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
● Past primary objective of businesses was profit
maximization. Now, profit maximization is a long run
objective besides fulfilling ethics in the business.

● Businesses are viewed as a subsystem to the social

system. This is because any time in the social system is
influenced by; the organization, innovations, new ideas
etc.

Thus, Option B is correct.

4. Statement I: The mechanism ensuring corporate
Q.
governance includes; Companies act 1956 and also
Securities law
Statement II: Indian Companies Act 1956 enabled
companies to effectively put a check on fraudulent
investment schemes
Choose the correct option from those below:
A. Statement I is correct, Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
4. कर्र्न I: कॉपोरे ट प्रशासर्न को सुर्र्नर्ित करर्ने वाले तंत्र में शार्मल
Q.
हैं ; कंपर्नी अर्धर्र्नयम 1956 और प्रर्तभूर्त योजर्ना

कर्र्न II: भारतीय कंपर्नी अर्धर्र्नयम 1956 र्ने कंपर्र्नयों को प्रभावी

रूप से धोिाधडी वाली र्र्नवेश योजर्नाओं पर रोक लगार्ने में सक्षम
बर्नाया

र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्नें:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
● The mechanism ensuring corporate governance
includes; Companies act 1956 and also Securities law.
● Indian Companies Act 1956 came into existence through
an act of the parliament and it enabled companies to be
formed via registration. In addition to that it sets out the
responsibilities of companies, of the executive directors
and the secretaries.
● Securities Laws (Amendment) Act, 2014 gave new
powers to the market regulator Securities and Exchange
Board of India (SEBI) to effectively pursue fraudulent
investment schemes.
Thus, Option A is correct.
5. Q.Which one of the following statements about value
drivers is incorrect?
A. Valuation defines the corporate value and describes the
key drivers of value
B. Strategy describes the value enhancing financial policies
available to the company
C. Value drivers are variables that influence the company’s
bottom line or profit
D. Corporate Governance talks about the policies of top
management for value creation
5. मूल्य चालकों के सन्दभथ में र्र्नम्नर्लखित में से कौर्न सा कर्र्न गलत
Q.
है ?

A. मूल्यांकर्न कॉपोरे ट मू ल्य को पररभार्ित करता है और मू ल्य के

प्रमुि चालकों का वणथर्न करता है
B. रणर्नीर्त कंपर्नी को उपलब्ध र्वत्तीय र्नीर्तयों को बढार्ने वाले मू ल्य
का वणथर्न करती है
C. मार्न चालक वे चर हैं जो कंपर्नी की र्र्नचली रे िा या लाभ को
प्रभार्वत करते हैं
D. कॉपोरे ट प्रशासर्न मूल्य र्र्नमाथण के र्लए शीिथ प्रबंधर्न की र्नीर्तयों
के बारे में बात करता है ।
Sol.
Q.
● Valuation defines the corporate value and describes the
key drivers of value.
● Strategy sets up a clear link between corporate value
and specific business strategies.
● Finance on the other hand describes the value
enhancing financial policies available to the company.
● Value drivers are variables that influence the company’s
bottom line or profit.
● Corporate Governance talks about the policies of top
management like performance measurement,
compensation systems and investor communication for
value creation.
Thus, Option B is correct.
6. Assertion (A): Successful implementation of value based
Q.
management makes organizations perform better
Reason (R): Value based organizations keep their
executives highly rewarded
A. Both (A) and (R) are correct, and (R) is the correct
explanation of (A).
B. Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
C. (A) is correct, but (R) is not correct.
D. (A) is wrong, and (R) is correct.
6. अर्भकर्र्न (A): मूल्य आधाररत प्रबंधर्न का सफल कायाथ न्वयर्न
Q.
संगठर्नों का प्रदशथर्न बेहतर करता है

कारण (R): मू ल्य आधाररत संगठर्न अपर्ने अर्धकाररयों को अत्यर्धक

पुरस्कृत करते हैं ।

A. (A) और (R) दोर्नों सही हैं , और (R) (A) का सही स्पष्टीकरण है ।

B. (A) और (R) दोर्नों सही हैं , लेर्कर्न (R) (A) का सही स्पष्टीकरण र्नही ं
है ।
C. (A) सही है , लेर्कर्न (R) गलत है ।
D. (A) गलत है , और (R) सही है ।
Sol.
Q.
● Successful implementation of value based management
makes organizations perform better than their peers
because of higher return and value creation.

● Value based organizations keep their executives highly

rewarded.

Thus, Option B is correct.

7. One of the types of ethical issues in business is fraud. Choose
Q.
the option from below that shows all correct statements
regarding organizational frauds
a) Fraud is a betrayal that involves manipulation and
communication of doctored facts
b) Marketing fraud involves exaggerated advertising or boasting
c) Collusion is when both employees and customers become
victim of fraud
d) Consumer fraud happens when consumers are deceived by
businesses for their gains
e) Consumer fraud happens when consumers try to deceive
businesses
Choose the correct option from those below:
A. a,b,e B. a,c,d C. b,c,d D. b,d,e
7. व्यवसाय में र्नैर्तक मुद्दों के प्रकारों में से एक धोिाधडी है । र्नीचे से
Q.
र्वकल् चुर्नें जो सं गठर्नात्मक धोिाधडी के संबंध में सभी सही
बयार्न र्दिाता है
a) धोिाधडी एक र्वश्वासघात है र्जसमें र्सद्ांतबद् तथ्ों का हे रफेर
और संचार शार्मल है
b) र्वपणर्न धोिाधडी में अर्तरं र्जत र्वज्ञापर्न शार्मल है
c) अर्भसंर्ध तब होती है जब कमथ चारी और ग्राहक दोर्नों धोिाधडी
का र्शकार हो जाते हैं
d) उपभोक्ता धोिाधडी तब होती है जब उपभोक्ताओं को उर्नके
लाभ के र्लए व्यवसायों द्वारा धोिा र्दया जाता है
e) उपभोक्ता धोिाधडी तब होती है जब उपभोक्ता व्यवसायों को
धोिा दे र्ने की कोर्शश करते हैं
र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्नें:
A. a,b,e B. a,c,d
C. b,c,d D. b,d,e
Sol. Q.
● Fraud is nothing but a purposeful betrayal that involves manipulation and
communication of doctored facts in order to harm others. There are a few
types of frauds that can go on in an organization as follows:
● Marketing fraud involves exaggerated advertising or boasting about
something on which no reasonable buyer would rely.
● Consumer fraud happens when consumers try to deceive businesses for
their own gains.
● Accounting fraud is about falsifying information about an organization’s
financial reports that contains information about the financial health of the
company relevant to investors.
● Misleading marketing communications destroys stakeholder’s trust in the
company.
● Collusion is when an employee helps any consumer in committing fraud.
● Guile is associated with a person who uses tricks to obtain an unfair
advantage.
Thus, Option A is correct.
8. Which of the following are among the 4 Ps of corporate
Q.
governance?
a) People b) Performance
c) Perspective d) Process
e) Purpose
र्र्नम्नर्लखित में से कौर्न र्र्नगर्मत (कॉपोरे ट) प्रशासर्न के Ps में से हैं ?
a) पीपुल b) पफाांमेंस
c) प्रास्पेखिव d) प्रोसेस
e) पपथस
र्नीचे से सही कूट को चुर्नें:
Choose the correct code from below:
A. a, b and d B. a, b, d and e
C. a, c, d and e D. a, b, c and d
Sol.
Q.
4 Ps of corporate governance are-:

● People

● Performance

● Process

● Purpose.

Thus, Option B is correct.

9. Assertion (A): The stakeholders who have the most
Q.
power, legitimacy and urgency are given priority by CEOs.
Reason (R): The utilitarian approach of ethical behaviour
proposes that actions and plans should be judged by their
consequences.
A. Both (A) and (R) are correct, and (R) is the correct
explanation of (A).
B. Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
C. (A) is correct., but (R) is not correct.
D. (A) is wrong, and (R) is correct.
9. अर्भकर्र्न (A): र्जर्न र्हतधारकों के पास सबसे अर्धक शखक्त,
Q.
वैधता और तात्कार्लकता है , उन्हें सीईओ की प्रार्र्मकता दी जाती
है ।

कारण (R): र्नैर्तक व्यवहार के उपयोर्गतावादी दृर्ष्टकोण का प्रस्ताव

है र्क कायों और योजर्नाओं को उर्नके पररणामों से आं का जार्ना
चार्हए।

A. (A) और (R) दोर्नों सही हैं , और (R), (A) की सही व्याख्या है ।

B. (A) और (R) दोर्नों सही हैं , लेर्कर्न (R), (A) की सही व्याख्या र्नही ं
है ।
C. (A) सही है ।, लेर्कर्न (R) गलत है ।
D. (A) गलत है , और (R) सही है ।
Sol.
Q.
The utilitarian approach of ethical behaviour proposes
that actions and plans should be judged by their
consequences.
● People should, therefore, behave in a way that will
produce the greatest benefit to society and produce the
least harm or the lowest cost.
● The stakeholders who have the most power, (ability to
affect the company), legitimacy (legal or moral claim on
company resources) and urgency (demand for immediate
attention) are given priority by CEOs.
● It is, therefore, most obvious that those stakeholders
will be considered while others will be ignored.
Thus, Option A is correct.
10. Match List-I and List-II
Q.

Choose the correct code: /

A. a-i, b-iv, c-ii, d-iii B. a-ii, b-i, c-iv, d-iii
C. a-iii, b-i, c-iv, d-ii D. a-ii, b-iv, c-i, d-iii
10. सूची-I और सूची-II को र्मलाएं -
Q.

सही कूट को चुर्नें:

A. a-i, b-iv, c-ii, d-iii
B. a-ii, b-i, c-iv, d-iii
C. a-iii, b-i, c-iv, d-ii
D. a-ii, b-iv, c-i, d-iii
Sol.
Q.
The correct pairing as follows-:
● Utilitarianism: This model of ethics advocates that the choice
with maximum benefit to the people must be opted. Sometimes, it
may lead to individual rights infringement.
● Rights: Under the rights theory, the principles validated and
endorsed by the society are considered as the ethical code of
conduct.
● Virtue: The virtue ethical theory judges a person on the basis of
his/her character rather than his/her actions. It takes into account
the person's morals, principles, values and motivation.
● Deontology: The deontological theory of ethics states that the
decision between what is correct. and what is wrong should be
made on the basis of rules and regulations. A deontologist will
always adhere to his duties and obligations as per the law.
Thus, Option D is correct.
11. What does ‘D’ in RADAR Logic stand for?
Q.
RADAR तकथ में D का क्या अर्थ है ?
A. Define
B. Design
C. Deploy
D. Determine
Sol.
Q.
RADAR stands for Results, Approaches, Deploy, Assess and
Refine. It is a significant managerial tool that provides a
structured method of questioning the performance of the
organisation.

Thus, Option C is correct.

12. Assertion (A): Utilitarians weigh the good and bad
Q.
delivered by two alternative actions so as to choose the
action with positive outcomes.
Reason (R): The term ‘Utility’ under The Theory of
Utilitarianism implies the extent to which an action boosts
happiness.
A. Both (A) and (R) are correct, and (R) is the correct
explanation of (A).
B. Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
C. (A) is correct., but (R) is not correct.
D. (A) is wrong, and (R) is correct.
12. अर्भकर्र्न (A)- उपयोर्गतावादी दो वैकखल्क कायों द्वारा र्दए
Q.
गए अच्छाई व बुराई को तौलते हैं र्जससे सकारात्मक पररणामों वाले
कायों को चुर्ना जा सके।

पररणाम (R)- उपयोर्गतावाद के र्सद्ांत के अंतगथत उपयोर्गता शब्द

इं र्गत करता है र्क कोई कायथ र्कस हद तक िुशी को बढाता है ।

A. दोर्नों (A) और (R) सही हैं , और (R), (A) की सही व्याख्या है

B. दोर्नों (A) और (R) सही हैं , लेर्कर्न (R), (A) की सही व्याख्या र्नही ं है
C. (A) सही है , लेर्कर्न (R) सही र्नही ं है
D. (A) गलत है लेर्कर्न (R) सही है
Sol.
Q.
The Theory of Utilitarianism states that the right action is
the one that brings greatest happiness among people.
Utility in this context does not imply the usefulness of
actions but the extent to which an action boosts
happiness. That is why Utilitarians weigh the good and
bad delivered by two alternative actions so as to choose
the action with positive outcomes.

Thus, Option A is correct.

13. Match List I with List II
Q.

Choose the correct code: / र्नीचे र्दए गए कूटों में से उत्‍तर चुर्नें-
A. a-ii, b-iv, c-i, d-iii B. a-iv, b-iii, c-i, d-ii
C. a-ii, b-iii, c-iv, d-I D. a-iv, b-iii, c-ii, d-i
13. सूची 1 को सूची 2 से सुमेर्लत करें -
Q.

र्नीचे र्दए गए कूटों में से उत्‍तर चुर्नें-

A. a-ii, b-iv, c-i, d-iii B. a-iv, b-iii, c-i, d-ii
C. a-ii, b-iii, c-iv, d-I D. a-iv, b-iii, c-ii, d-i
Sol.
Q.
● Meta Ethics discovers the origin of right and wrong. It concentrates
on the basics of ethics for properly defining ethical terms and the
nature of moral judgements.

● Normative Ethics attempts to establish moral standards to regulate

the behavior of individuals. The basic principle of normative ethics is
to give others what he or she wants from others.

● Descriptive Ethics is also known as comparative ethics. It is the

detailed analysis of what people think about morality and moral
principles.

● Applied Ethics uses philosophical methods to formulae ethical

guidelines in order to establish moral standards.

Thus, Option D is correct.

14. Match List-I with List-II
Q.

Choose the correct code:

A. a-iii, b-iv, c-i, d-ii B. a-iii, b-i, c-iv, d-ii
C. a-iv, b-ii, c-i, d-iii D. a-ii, b-iv, c-iii, d-iv7
14. सूची-I का सूची-II के सार् र्मलार्न कीर्जए।
Q.

सही कूट का चयर्न कीर्जए:

A. a-iii, b-iv, c-i, d-ii
B. a-iii, b-i, c-iv, d-ii
C. a-iv, b-ii, c-i, d-iii
D. a-ii, b-iv, c-iii, d-iv
Sol.
Q.
● The Cadbury Report came into effect in December 1992.

● The Greenbury Report came into effect in January 1995.

● The Hampel Report came into effect in November 1995

● Higgs Report came into effect in January 2003.

Thus, Option A is correct.

15. Statement I: CSR can go a long way in improving the
Q.
social welfare of India.
Statement II: India has become the first country in the
world to make CSR mandatory for Indian companies.
Choose the correct option from those below:
A. Statement I is correct., Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
 15. कर्र्न I: भारत के सामार्जक कल्याण को बेहतर बर्नार्ने में
Q.
CSR एक महत्वपूणथ भूर्मका र्र्नभा सकता है ।
कर्र्न II: भारतीय कंपर्र्नयों के र्लए CSR को अर्र्नवायथ करर्ने
वाला भारत र्वश्व का पहला दे श बर्न गया है ।
र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्र्नए:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
● India has become the first country in the world to make
CSR mandatory for Indian companies.

● CSR can go a long way in improving the social welfare of

any country as per a KPMG survey results Indian
companies have spent 47% higher on CSR activities than in
2014.

Thus, Option C is correct.

16. Match List-I with List-II
Q.

Choose the correct code:

A. a-iii, b-i, c-i, d-ii
B. a-iv, b-iii, c-i, d-ii
C. a-iv, b-i, c-iii, d-ii
D. a-iii, b-ii, c-i, d-iv
16. सूची-I का सूची-II के सार् र्मलार्न कीर्जए।
Q.

सही कूट का चयर्न कीर्जए:

A. a-iii, b-i, c-i, d-ii
B. a-iv, b-iii, c-i, d-ii
C. a-iv, b-i, c-iii, d-ii
D. a-iii, b-ii, c-i, d-iv
Sol.
Q.
● In France, the Grenelle II Act was passed to require
companies to include ESG (Environmental Social and
Governance) information in their annual report.

● Social Venture Exchange is a social stock exchange in

Canada.

● Financial Reporting Council is an independent regulator in

the United Kingdom that sets the UK’s Corporate
Governance Code.

● The Sarbanes Oxley Act was passed in the United States.

Thus, Option B is correct.

17. Assertion (A): The German Model of Corporate
Q.
Governance specifies two boards with separate members.
Reason (R): The size of the supervisory board cannot be
changed by shareholders.
A. Both (A) and (R) are correct, and (R) is the correct
explanation of (A).
B. Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
C. (A) is correct., but (R) is not correct.
D. (A) is wrong, and (R) is correct.
17. अर्भकर्र्न (A): र्र्नगम शासर्न का जमथर्न मॉडल अलग-अलग
Q.
सदस्ों के सार् दो बोडथ र्र्नर्दथ ष्ट करता है ।

कारण (R): पयथवेक्षी बोडथ का आकार शेयरधारकों द्वारा र्नही ं बदला

जा सकता है ।

A. (A) और (R) दोर्नों सही हैं तर्ा (R), (A) का सही स्पष्टीकरण है ।
B. (A) और (R) दोर्नों सही हैं तर्ा (R), (A) का सही स्पष्टीकरण र्नही ं
है ।
C. (A) सही है , लेर्कर्न (R) गलत है ।
D. (A) गलत है , लेर्कर्न (R) सही है ।
Sol.
Q.
● The German Model of Corporate Governance specifies
two boards (management and supervisory board) with
separate members since the two boards are distinct, and
the same person will not be able to serve simultaneously
on two boards.

● The size of the supervisory board cannot be changed by

shareholders and is set by law

Thus, Option B is correct.

18. Which of the following characterize good corporate
Q.
board practices?
a) Well-defined roles and responsibilities
b) Emphasize integrity and ethical dealing
c) Strong shareholder rights
d) Well-structured board
e) Effective risk management
Choose the correct option from those below:
A. a,b,c,d
B. a,b,d,e
C. a,c,d,e
D. b,c,d,e
18. र्र्नम्नर्लखित में से कौर्न सा अच्छे र्र्नगम मंडल (बोडथ ) कायों की
Q.
र्वशेिता है ?
a) अच्छी तरह से पररभार्ित भूर्मकाएं और र्जम्मेदाररयां
b) ईमार्नदारी और र्नैर्तक व्यवहार पर जोर दे र्ना
c) मजबूत शेयरधारक अर्धकार
d) अच्छी तरह से संरर्चत बोडथ
e) प्रभावी जोखिम प्रबंधर्न
र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्र्नए:
A. a,b,c,d B. a,b,d,e
C. a,c,d,e D. b,c,d,e
Sol.
Q.
● Good corporate board practices include well-defined
roles and responsibilities, emphasize integrity and ethical
dealing, well-structured board, effective risk management,
best remunerations practices.

● Strong shareholder rights lead to conflict with other

stakeholders.

Thus, Option B is correct.

19. Match List-I with List-II
Q.

Choose the correct code:

A. a-ii, b-iii, c-i, d-iv
B. a-i, b-ii, c-iii, d-iv
C. a-ii, b-iv, c-iii, d-i
D. a-iv, b-i, c-ii, d-iii
19. सूची-I का सूची-II के सार् र्मलार्न कीर्जए।
Q.

सही कूट का चयर्न कीर्जए:

A. a-ii, b-iii, c-i, d-iv

B. a-i, b-ii, c-iii, d-iv
C. a-ii, b-iv, c-iii, d-i
D. a-iv, b-i, c-ii, d-iii
Sol.
Q.
● Birla Committee was established in 2000.

● Narayan Murthy Committee was established in 2003.

● J J Irani Committee was established in 2005.

● CII code of desirable Corporate Governance was

established in the year 1998.

Thus, Option A is correct.

Q.
20. Statement I: Strategic Corporate Social Responsibility
(CSR) emerged from Management.
Statement II: Transformative CSR is different from
strategic CSR as it is focused at the micro-level.
Choose the correct option from those below:
A. Statement I is correct., Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
20. कर्र्न I: रणर्नीर्तक र्नैगर्मक सामार्जक उत्तरदार्यत्व (CSR)
Q.
प्रबंधर्न से उभरी है ।

कर्र्न II: पररवतथर्नकारी CSR, रणर्नीर्तक CSR से अलग है क्योंर्क यह

सूक्ष्म स्तर पर केंर्ित है ।

र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्र्नए:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
● Strategic Corporate Social Responsibility (CSR) emerged
from Management referring to relating CSR activities to
the company’s core business.

● Strategic CSR is different from transformative CSR as it is

focused at the micro-level, i.e. aligning social and
environmental goals with the company's strategy.

Thus, Option A is correct.

21. Statement I: Parties involved in corporate governance
Q.
includes a chief executive officer, board of directors and
management.
Statement II: Corporate governance is an internal thing
and it does not have any effect on market valuation.
Choose the correct option from those below:
A. Statement I is correct, Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
21. कर्र्न I: कॉपोरे ट प्रशासर्न में शार्मल दलों में एक मुख्य
Q.
कायथकारी अर्धकारी, र्र्नदे शक मंडल और प्रबंधर्न शार्मल हैं ।

कर्र्न II: कॉपोरे ट प्रशासर्न एक आं तररक चीज है और बाजार के

मूल्यांकर्न पर इसका कोई प्रभाव र्नही ं पडता है ।

र्नीचे र्दए गए र्वकल्ों में से सही र्वकल् चुर्नें:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
● Parties involved in corporate governance include chief
executive officer, the board of directors, management and
shareholders.
● Directors, workers, and management receive salaries
and benefits. Shareholders receive capital returns.
● Corporate governance protects the interests of investors
and ensures the commitment of the board in managing
the company.
● Good corporate governance is rewarded with the higher
market valuation.
Thus, Option D is correct.
22. Assertion (A): An ethical issue is an unidentifiable
Q.
problem and an identifiable situation.
Reason (R): An ethical issue requires a person to choose
several actions which are to be evaluated and involve
conflict between moral imperatives.
A. Both (A) and (R) are correct, and (R) is the correct
explanation of (A).
B. Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
C. (A) is correct, but (R) is not correct.
D. (A) is wrong, and (R) is correct.
22. अर्भकर्र्न (A): एक र्नैर्तक समस्ा एक अज्ञात समस्ा और एक
Q.
पहचार्न योग्य खथर्र्त है ।

कारण (R): एक र्नैर्तक समस्ा के र्लए एक व्यखक्त को कई कायों का

चयर्न करर्ने की आवश्यकता होती है , र्जर्नका मूल्यां कर्न र्कया जार्ना
है और र्जसमें र्नैर्तक अर्र्नवायथता के बीच संघिथ शार्मल है ।

A. (A) और (R) दोर्नों सही हैं , और (R) (A) की सही व्याख्या है ।

B. (A) और (R) दोर्नों सही हैं , लेर्कर्न (R) (A) की सही व्याख्या र्नही ं है ।
C. (A) सही है , लेर्कर्न (R) गलत है ।
D. (A) गलत है , और (R) सही है ।
Sol.
Q.
● A situation in which an individual is provided with many
alternatives in which more than one option appears to be
correct results in an ethical dilemma.

● While Business issues are straightforward , Ethical issues

are an identifiable problem, situation or opportunity.

● It involves conflict between moral imperatives.

Thus, Option D is correct.

23. Match List-I with List-II
Q.

Choose the correct code:

A. a-iii, b-iv, c-ii, d-i
B. a-ii, b-i, c-iii, d-iv
C. a-iii, b-i, c-iv, d-ii
D. a-i, b-ii, c-iv, d-iii
23. सूची- I का सूची- II के सार् र्मलार्न करें
Q.

सही कूट का चयर्न करें :

A. a-iii, b-iv, c-ii, d-i

B. a-ii, b-i, c-iii, d-iv
C. a-iii, b-i, c-iv, d-ii
D. a-i, b-ii, c-iv, d-iii
Sol.
• Corporate governance refers to the system through which
Corporations are controlled and directed. It sets a relationship
Q.
between a company’s management and other stakeholders. Also,
provides a structure which helps in setting company's objective and
means of attaining those objectives.

• Corporate Codes refers to the rules and norms relevant for

organizational operation and employees are required to obey these
rules for the proper functioning of a corporation.

• Corporate Ethics refer to a Value Statement, that guides the

behaviour of an employee with general principles and helps in
decision making.

• Corporate Mechanism refers to a set of controls for a corporation

which monitors the progress and activities of an organization.

Thus, Option C is correct.

24. Statement I: India is one of the first countries to make
Q.
CSR mandatory for companies.
Statement II: Maoism theory was developed in China by
Karl Marx.
Choose the correct option from the following:
A. Statement I is correct, Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
24. कर्र्न I: भारत कंपर्र्नयों के र्लए CSR अर्र्नवायथ करर्ने वाले
Q.
शुरुआती दे शों में से एक है ।

कर्र्न II: माओवाद र्सद्ां त का र्वकास चीर्न में कालथ मार्क्थ द्वारा
र्कया गया र्ा।

र्र्नम्नर्लखित में से सही र्वकल् चुर्नें:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
• India is the first country to make CSR mandatory for
Indian companies under Companies ACT 2013.

• Maoism theory was developed in China by Mao Zedong.

Thus, Option A is correct.

Q.
25. Statement I: The three broad components of
sustainability are Planet, People and Profits.
Statement II: The three P’s of sustainability are often
referred to the Bottom of the Pyramid.
Choose the correct option from the following:
A. Statement I is correct, Statement II is incorrect.
B. Statement I is incorrect, Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
25. कर्र्न I: खथर्रता के तीर्न व्यापक घटक प्लेर्नेट, पीपल और
Q.
प्रॉर्फट हैं ।

कर्र्न II: खथर्रता के तीर्न P को अर्क्र र्परार्मड के र्र्नचले भाग से

संदर्भथत र्कया जाता है ।

र्र्नम्नर्लखित में से सही र्वकल् चुर्नें:

A. कर्र्न I सही है , कर्र्न II गलत है ।

B. कर्र्न I गलत है , कर्र्न II सही है ।
C. कर्र्न I और कर्र्न II दोर्नों सही हैं ।
D. कर्र्न I और कर्र्न II दोर्नों गलत हैं ।
Sol.
Q.
• The three broad components of sustainability are
Planet, People and Profits.

• The three P’s of sustainability are often referred to as

the Triple Bottom Line.

Thus, Option A is correct.