CBSE Class 11 Business Studies Social Responsibilities of Business and Business Ethics Worksheet

Mcq Questions For Ncert Class 11 Business Studies Social Responsibilities of Business and Business Ethics

Question. Air pollution is caused by the dumping of chemical waste into big rivers, streams, lakes etc.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. In addition to earning profits, a businessmen has to fulfill certain social obligations. Which of the following is not a social obligation?
(a) Keep customers satisfied
(b) Maintain law and order
(c) Keep employees happy
(d) Burden on consumers

Answer : D

Question. Responsibility of a business to prevent pollution can be categorised in which of the following category?
(a) Political Responsibility
(b) Discretionary Responsibility
(c) Ethical Responsibility
(d) Economic Responsibility

Answer : B

Question. …… pollution can be responsible for many diseases like loss of hearing, mental disorder, increase in cholestrol level etc.
(a) Air
(b) Water
(c) Noise
(d) Land

Answer : C

Question. Noise pollution has resulted in ozone depletion which is leading to climate change and dangerous warning for the earth.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Fast Track Ltd. is a leading manufacturer of automobiles spare parts. The managing director of the company is of the view that business is an economic institution, which exists with the basic objective of profit maximisation and assuming social responsibility is against this objective.
However, one of the newly appointed manager tried to convince MD in favour of social responsibility. Which factor is highlighted by the manager to the MD?
(a) Reality of social responsibility
(b) Need for social responsibility
(c) Both (a) and (b)
(d) None of the above

Answer : A

Question. Match the following.

Codes

      A    B   C
(a) (iii) (i)  (ii)
(b) (iii) (ii) (i)
(c) (ii)  (i)  (iii)
(d) (i)  (ii)  (iii)

Answer : B

Question. Helping people affected by natural calamities like floods or earthquakes is a discretionary responsibility of the business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Environmental protection can best be done by efforts of
(a) business people
(b) government
(c) scientists
(d) All the people

Answer : D

Question. Business is an economic institution, which exists with the basic aim of ……… maximisation.
(a) welfare
(b) profit
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. Mercury Ltd. decided to donate 2% of its sales to Child Rights and You (CRY) for improving the condition of children in India.
This initiative by the company was highly appreciated by the public and their sales increased by 10%. Identify the interest group towards which Mercury Ltd. is discharging its social responsibility?
(a) Owners
(b) Workers
(c) Community or society
(d) Consumers

Answer : C

Question. Aquasure Ltd. manufactures RO water purifiers. In order to increase sales of their product, they encouraged their salesman to make false claims to customers about quality of their RO. This increased the sale of their water purifiers. Identify the group whose interest is being ignored by Squasure Ltd.
(a) Shareholders
(b) Consumers
(c) Government
(d) Society

Answer : B

Question. Star Ltd. uses rocks, trees, electric poles, walls of historical monuments to advertise its products. This advertising policy has made their product known to the public. Identify the group whose responsibility is ignored by Star Ltd.
(a) Government
(b) Consumer
(c) Society
(d) Investor

Answer : C

Question. Business people have the skills to solve
(a) all social problems
(b) some social problems
(c) no social problems
(d) all economic problems

Answer : B

Question. Business should adopt eco-friendly production and marketing processes to ensure environmental protection.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. A company is manufacturing fairness cream using synthetic products and bleach, but company is advertising its cream as herbal cream. Also, company did not mention the ingredients on the pack. What value(s) is are being violated by the company?
(a) Unethical behaviour by cheating customers
(b) Violating rules of information by not given contents on packings
(c) Unfair practices of wrong information in advertising
(d) All of the above

Answer : D

Question. Respecting the religious sentiments and dignity of people which advertising for a product is an example of…responsibility.
(a) economic
(b) discritionary
(c) ethical
(d) legal

Answer : C

Question. The national society of professional engineers had a code, which requires professionals to
(a) dissociate themselves from organisations that are of a questionable character
(b) further the cause of public good
(c) advice clarity, the consequences of a technical opinion is overruled by a non technical person
(d) All of the above

Answer : D

Question. Use of synthetic fertilisers and pesticides in agriculture leads to
(a) water pollution
(b) noise pollution
(c) land pollution
(d) air pollution

Answer : C

Question. If a business is socially responsible towards its employees, it is able to check movement of labour. What do you mean by labour movement?
(a) Movement of labour from one department to another.
(b) Movement of labour from one employer to another.
(c) Movement of labour from one country to another.
(d) Movement of labour from villages to cities.

Answer : B

Question. Which of the following can explain the need for pollution control?
(a) Cost savings
(b) Reduced risk of liability
(c) Reduction of health hazards
(d) All of the above

Answer : D

Question. Which of the following is not an argument in favour of social responsibility?
(a) Lack of broad public support
(b) Converting problems into opportunities
(c) Better environment for doing business
(d) Maintenance of society

Answer : A

Question. Which responsibility of the business is not the responsibility of the business to the government?
(a) Following the pollution laws as set by the government.
(b) Establishment of the industrial undertaking as per the government norms.
(c) Providing after sales service.
(d) Payment of taxes, fees, surcharge etc with the honesty.

Answer : C

Question. Supply of right quality and quantity of goods to consumers at reasonable prices constitutes the responsibility of an enterprise towards government.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. If business is to operate in a society which is full of diverse and complicated problems, it may have
(a) little chances of success
(b) great chances of success
(c) little chance of failure
(d) no relation with success or failure

Answer : A

Assertion-Reasoning MCQs :

Question. Assertion (A) Social responsibility is a legal responsibility of the business.
Reason (R) Companies Act, 2013, provides for the social responsibility of business.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Economic activities of business are legitimate even if business does not fulfil social responsibility.
Reason (R) Services to the society increases the growth chances of business.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : D

Question. Assertion (A) A business should ensure timely and honest payment of taxes and should abide by rules laid down by the government.
Reason (R) Business should act according to the well accepted values of the society.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Social responsibility is restricted towards a particular section of society.
Reason (R) Social responsibility ensures a fair remuneration for the work.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : D

Question. Assertion (A) Legal obligations are the compulsions which should be followed as per the provisions of law.
Reason (R) Social responsibility is the voluntary action on the part of business for its society.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Case Based MCQs : 

By the early 1990s, there was considerable pressure for governments to create agreements concerning the environment and its protection. In 1992, the United Nations Conference on Environmental and Development (UNCED) was held in Rio de Janeiro. The main outcome of the conference was Agenda 21, which marked an important landmark in the sustainable development fight and inter country cooperation. Agenda 21 was the main document signed at the conference. It was over 800 pages long and represented a new global commitment to sustainable development.
It was not a legally binding document, but was devised as a working plan which countries would follow. The conference marked the start of global cooperation, which was needed to deal with the many issues, including concern for the environment. The concept is supporting, sustainable development. Many businesses have integrated a strategy of sustainability (taking into account its three main aspects-economic, environment, social, etc). It makes good business sense for companies to be environment-friendly as improved efficiency in manufacturing in turn leads to a more efficient use of natural resources.
Operating efficiently translates to competitive advantage for business and supports the economic pillar of sustainability as well. Therefore, all aspects of sustainabil -ity are seen as complementary and mutually interdependent.

Question. Where was the United Nations Conference on Environmental and Development (UNCED) organised?
(a) USA
(b) Rio De Janeiro
(c) UK
(d) India

Answer : B

Question. United Nations has identified many problems that cause damage to the natural environment. What problem(s) is /are referred here?
(a) Ozone depletion
(b) Deforestation
(c) Danger to biological diversity
(d) All of the above

Answer : D

Question. “It is an approach in which resources are used in balanced form to meet human needs without causing much harm to the natural environment, with this approach present needs of human beings can be met along with sustaining resources for future generation.’’ Which approach is discussed in above paragraph?
(a) Environment protection
(b) Sustainable development
(c) Corporate social responsibility
(d) Business ethics

Answer : B

Question. This document states, that responsible businesses, should play a major role in improving the efficiency of resource use.
This can be done by minimising waste and protecting human health and environmental quality. Identify which document is discussed above in the given para?
(a) Code of ethics
(b) Environment action plan
(c) Agenda 21
(d) None of the above

Answer : C

Question. Which of the following can explain the need for pollution control?
(a) To control waste
(b) Clearer visibility
(c) Availability of natural products in pure form
(d) All of the above

Answer : D

Inn Trin Ltd is a well known company in telecom sector. The company is committed to treat everyone fairly with respect and dignity, regardless of difference in age, caste, creed, gender etc. It not only abide by all the laws and pay taxes on time, but also make service and participate in social service projects. It prefer to give fair advertisement without any exaggeration, and change fairly from its customers and maintain quality. Its managers work effectively and efficiently and minimise waste to maximise the return to their shareholders. The company is also running a charitable hospital to provide medical facility to the people of that area.

Question. “It prefer to give fair …… quality”. In the above lines, identify towards which interest group company is fulfilling its social responsibility?
(a) Owners
(b) Employees
(c) Consumers
(d) Investors

Answer : D

Question. “It not only abide by all the laws …… and for taxes on time”. In this paragraph, towards which interest group company is fulfilling responsibility?
(a) Government
(b) Consumer
(c) Society
(d) Employee

Answer : A

Question. “The company is running a charitable hospital …… that area.” In the above lines, identify towards which interest group company is fulfilling its social  responsibility?
(a) Shareholders
(b) Community
(c) Employees
(d) Consumer

Answer : B

Question. “Managers work effectively …… return to their shareholder”. In the above lines, identify towards which interest group company is fulfilling its social responsibility?
(a) Shareholders/owners
(b) Community/society
(c) Employees
(d) Government

Answer : A

Question. “Company is committed …… creed and gender etc”. Identify towards which interest group, company is fulfilling its social responsibility?
(a) Government
(b) Consumer
(c) Community
(d) Employees

Answer : D

Dinesh is the CEO of a pharmaceutical company ‘Alpha-Beta’ with net worth of ₹ 500 crores. The company is based in Jabalpur which is famous for its soft marble. Many craftsmen make beautiful statues from the marble. However, they made barely enough to fulfil their basic needs.
On researching about the probable reasons for their plight, Dinesh found that they were unorganised and lacked the financial strength to market their produce.
As a part of his CSR, Dinesh created a fund of ₹ 50 lakhs and advanced them a certain sum which enabled them to stock over their inventory. He also opened a school and a health centre for these craftsmen.

Question. Is it mandatory for Alpha-Beta company to spend money for the upliftment of the society?
(a) Yes
(b) No
(c) Both (a) and (b)
(d) None of these

Answer : A

Question. What proportion is required for companies like Alpha-Beta, to spend on activities related to social cause?
(a) 5%of the average net profit for past 3 years
(b) 2%of the average net profit for past 3 years
(c) 3%of the average net profit for past 5 years
(d) 2%of the average net profit for past 5 years

Answer : B

Question. Is Dinesh fulfilling his social responsibility?
(a) Yes
(b) No
(c) Can’t say
(d) None of these

Answer : A

Question. Company is required to mandatorily, abide the provisions of which of the following law?
(a) Partnership Act, 1932
(b) Companies Act, 2013
(c) Environment Act, 1986
(d) None of the above

Answer : B

Question. ……… is the reponsibility of enterprises for their impacts on society.
(a) Corporate Social Responsibility
(b) Company Social Responsibility
(c) Corporate Service Responsibility
(d) None of the above

Answer : A

Mcq Questions For Ncert Class 11 Business Studies Social Responsibilities of Business and Business Ethics

Question. E-choupal is an initiative of Indian Tobacco Corporation (ITC) Limited to link directly with rural farmers for procurement of agricultural produce. E-choupal was conceived to tackle the challenge posed by the unique features of Indian agriculture characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries. Through E-choupal ITC aims to change the quality of life and the entire outlook of Indian farmers.Towards which interest group, is ITC discharging its social responsibility?
(a) Shareholders
(b) Consumers
(c) Community or society
(d) Owners

Answer : C

Question. The management of Mars Ltd.manipulated its financial statements toshow lesser earnings so that low rate of divident can be given. Identify the group whose interest is being ignored?
(a) Customers
(b) Shareholders
(c) Government
(d) None of these

Answer : B

Question. Need for social responsibility arises due to the …………… .
(a) firm’s interest
(b) interest of society
(c) Both firm’s and society’s interest
(d) None of the above

Answer : C

Question. Corporate social responsibility is a term coined in India by
(a) Partnership Act, 1932
(b) Companies Act, 2013
(c) SEBI
(d) Environment (Protection) Act, 1986

Answer : B

Question. ‘To adopt fair trade policies and practices’. It is a example of responsibility of business towards ………….
(a) owners
(b) workers
(c) government
(d) consumers

Answer : C

Question. Match the statement given under Column I with correct option given underColumn II.

Codes
      A    B    C    D 
(a) (i)  (iii) (ii)  (iv)
(b) (ii)  (i)  (iv) (iii)
(c) (iv) (iii) (ii)  (i)
(d) (i)  (iv) (iii) (ii)

Answer : B

Question. A business, enterprise has a responsibility of producing fair returns to ……… on their capital investment.
(a) labour
(b) consumers
(c) government
(d) investor

Answer : D

Question. If an enterprise is creating good working environment for its workers, then, in this case, which responsibility is being fulfilled by the business?
(a) Responsibility towards shareholders
(b) Responsibility towards workers
(c) Responsibility towards owners
(d) Responsibility towards consumers

Answer : B

Question. Employees will stay with business only if they are satisfied with their working conditions.
(a) True
(b) False
(c) Can’t say
(d) Partilly true

Answer : A

Question. “According to Weights and Measures Act, every eatable product should explicitly bear a green dot for vegetarian contents and brown dot for non-vegetarian ingredients”.
However, this practice is not followed by Swad Pvt Ltd a company engaged in the manufacturing of frozen snaks. Identify the kind of social responsibility being ignored by the company.
(a) Ethical Responsibility
(b) Economic Responsibility
(c) Legal Responsibility
(d) Discretionary Responsibility

Answer : C

Question. Samarjeet has a sweet shop. During the festive season of Diwali, he purchased adulterated khoya and paneer at very low rates in order to make huge profits. As a result, many people fell sick after consuming the sweets because of food poisoning. Do you think, Samarjeet is a socially responsibile sweet seller?
(a) No
(b) Partially yes
(c) Yes
(d) None of these

Answer : A

Question. Government intervention is costly to businessmen and restricts their flexibility and freedom of making decisions.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Professional management education in universities and specialised management institutions have create a separate class of professional managers who are more interested in
(a) profit maximisation
(b) satisfyingmultiple interests of society
(c) unethical business practices
(d) None of the above

Answer : B

Question. Social responsibility of a business refers to ……… efforts on the part of a business to contribute to the welfare of society.
(a) compulsory
(b) voluntary
(c) legal
(d) ethical

Answer : B

Question. Which of the following is an act enacted for the environmental protection?
(a) TheWildlife Protection Act, 1972
(b) Companies Act, 2013
(c) FEMA, 1999
(d) National Green Tribunal Act, 2010

Answer : A

Question. Craft enterprises pays wages to its employees at a rate, which is much lower than the minimum wages prescribed by the government. The working conditions in the factory are inappropriate as there is lack of proper ventilation and there is a strict, rule against formation of trade union. Against, which ‘Group’, Craft Enterprises has ignored the social responsibility?
(a) Consumers
(b) Workers
(c) Society
(d) Shareholders

Answer : B

Question. Match the following.

Codes
      A    B   C    D
(a) (i)  (ii) (iii) (iv)
(b) (ii) (i)  (iii) (iv)
(c) (iii) (ii) (iv) (i)
(d) (i)  (iv) (iii) (ii)

Answer : B

Question. ………… is the injection of harmful substances into the environment that changes the physical, chemical and biological characteristics of air, land and water.
(a) Pollution
(b) Toxins
(c) Liquid and solid waste
(d) None of the above

Answer : A

Question. When business firms use eco-friendly method of production, then they are performing social responsibility towards …… group.
(a) customer
(b) shareholder
(c) employees
(d) community/ society

Answer : D

Question. To participate in government programmes relating to management of hazardous substances, cleaning of rivers etc is a legal obligation for every business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Legal provisions make it compulsory for certain classes of …… to be socially responsible.
(a) partnership firms
(b) cooperative societies
(c) companies
(d) sole proprietorship firms

Answer : C

Question. An enterprise must behave as a good citizen is an example of its responsibility towards
(a) owners
(b) workers
(c) consumers
(d) community

Answer : D

Question. Economic responsibility includes the behaviour of the firm that is expected by society, but not codified in law.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Trendz Ltd is a leading manufacturer of garments. The company distributes its defective products free of cost (after getting them repaired from Nari Niketen at lower cost) to the orphanage. Identify and state the kind of social responsibility, which the company is trying to achive.
(a) Legal
(b) Social
(c) Discritionary
(d) Ethical

Answer : C

Question. Which of the following are laws enacted for environmental protection?
(a) The Environment Act, 1986
(b) The Forests Conservation Act, 1980 Amended in 1988
(c) The HazardousWastes Act, 1989
(d) All of the above

Answer : D

Question. United Nations has identified ozone depletion as one of the major problems that causes damage to natural environment. It is caused by
(a) emissions of carbon mono-oxide by industries and vehicles
(b) increase of O2 in environment
(c) dumping of chemical wastes into water bodies
(d) dumping of toxic wastes on land

Answer : A

Question. A separate department for matters related to environment, department of environment was created by central government in year
(a) 1985
(b) 2005
(c) 1980
(d) 1990

Answer : C

Question. Every business enterprise should install pollution control devices in its premises to reduce pollution and avoid penalties.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. It is the social responsibility of every business to take steps to check pollution and to protect the environment. Any business which takes steps in this direction gets which of the following benefits?
(a) Reduction of capital investment
(b) Increased customer satisfaction
(c) Reduction in workforce
(d) Savings in costs

Answer : D

Question. Ethical responsibility of a business includes
(a) behaviour of firm that is expected by the society.
(b) produce goods and services that society wants.
(c) voluntary obligations that a society assumes.
(d) paying various statutory dues.

Answer : A