Deck 16: Ethics

Question 1

How might green issues be relevant to multinational companies?

A) Green non-polluting technology is often more expensive.
B) They are a source of cost savings.
C) They are not relevant.
D) Green non-polluting technology is often cheaper.

Answer 1

A

Question 2

Globalization includes:

A) reducing standards anywhere.
B) drawing on skills located anywhere.
C) drawing on savings accumulated anywhere.
D) creating production units anywhere.

Answer 2

A

Question 3

Ethics is a strict set of rules on how to conduct oneself in business matters.

Answer 3

False

Question 4

What is disintermediation?

A) Trading via a clearing house
B) Broker trading
C) Trading outside the market
D) Trading in the open pit

Question 5

Which of the following is not a reason for poor regulation?

A) Increased communication leading to disintermediation
B) A belief that regulation obstructs communication
C) The desire to protect the interests of developed countries
D) International organizations see it as reducing competition

Question 6

What are ethics?

A) A code that acts as a guide to individual and social behaviour.
B) A set of company rules.
C) A code that forms the basis of the legal system.
D) The rules guiding the operations of the OECD.

Question 7

The new Malthusians are concerned about:

A) the large low paid workforce.
B) the growth of consumer population worldwide.
C) the growth in population worldwide.
D) the negative population growth rates.

Question 8

Ownership and control vary greatly between countries and between companies. Possible causes point to fundamental differences in the economies like:

A) the legal structure.
B) the overall size of the economy.
C) the currency used.
D) None of the above.

Question 9

The moral argument for the capitalist market system does not include:

A) liquidity, markets and banks gather the savings of many small depositors.
B) maturity transformation short term loans to long term borrowers.
C) allocative efficiency, deciding what are the worthy or profitable operations.
D) risk transformation large lenders to small borrowers.

Question 10

What is meant by maturity transformation?

A) Lending for shorter terms than borrowing
B) Short-term lending funding long-term borrowing
C) Borrowing for short periods to repay longer term loans
D) Converting long-term loans to short term loans

Question 11

International financial markets are easy to regulate, local governments can influence MNCs i.e. regarding local taxes.

Question 12

Globalization of Information Technology leads to:

A) increased speed and accuracy of information transmissions
B) dispersion of technology
C) decrease in cultural barriers.
D) All of the above.

Question 13

Which of the following can be seen as the greatest non-business threat to investment and must be taken into account as an active constraint in any investment decision?

A) Threats of regulatory change and unclear application of regulations.
B) Competitors creating new and innovative products.
C) Trade unions forcing companies to pay a higher salary.
D) All of the above.

Question 14

Pressure groups use different forms of advocacy in order to influence public opinion and ultimately policy. They may play an important role in the development of political and social systems.

Question 15

What is meant by the race to the bottom?

A) Competing by lowering pay and conditions
B) Competition to reduce costs through greater efficiency
C) The movement of production to the Far East
D) The increase in government debt

Question 16

The expansion of global markets liberalizes the economic activities of the exchange of goods and money.

Question 17

What is the main feature of Islamic finance?

A) Haram
B) Bai bithaman ajil.
C) Murabaha(h)
D) Riba

Question 18

Maysir refers to:

A) uncertainty or excessive risk.
B) the charging of interest.
C) the encouragement of risk sharing.
D) a form of gambling.

Question 19

Evidence suggests that national wealth increases faster through trade than through aid, because:

A) Giving aid provides an incentive to improve.
B) Aid in the form of cash always ends up where it is needed.
C) Buying a country's produce helps the society to organize itself.
D) Buying a country's goods is bad for the economy.

Question 20

Which of the following is not part of the Global Greens Charter:

A) promotion of developed countries.
B) non-violence.
C) ecological wisdom.
D) respect for diversity.

Question 21

In common law countries:

A) directors and shareholders are represented on the board of directors.
B) the legal framework is less flexible.
C) the legal framework has not kept pace with technological developments.
D) shareholders have little say in the management of the company.

Question 22

What are watchers?

A) Market traders
B) Consumers
C) Pressure groups
D) Speculators

Question 23

The following element is not considered to be a part of a green policy deal:

A) Purchasing carbon credits.
B) Using renewable energy.
C) Waste reduction and recycling.
D) Increasing overall consumption.

Question 24

There are different forms of transactions in Islamic finance, which of the following is one of them?

A) Bai bithaman ajil (BBA)
B) Murabaha(h)
C) Ijara(h)
D) All of the above.

Question 25

'Growth built on cuts in workers' terms and conditions'. Which of the following is false?

A) Is part of the view that wealth obstructs development.
B) Is part of the philosophy that underlies the IMF.
C) Is seen as an economic policy by developed countries.
D) Describes the race to the bottom.

Question 26

What is the difference between the owner/manager relationships between the UK/US corporate governance and governance in Europe and elsewhere?

A) There is no difference.
B) Shareholding in the UK/US is more widely dispersed.
C) Trade unions have a greater presence on Boards in Continental Europe and elsewhere.
D) Continental European shareholders are far more dispersed (a large number of small shareholders).

Question 27

Riba refers to:

A) the encouragement of risk sharing.
B) the charging of interest.
C) the prohibition of banned investments.
D) The dissuasion of risk sharing.

Question 28

Which is not part of the immediate agenda for the Green movement?

A) Waste reduction
B) Purchasing considering the resources used in production
C) Energy, using renewable energy
D) Increasing wealth distribution

Question 29

Gharar refers to:

A) uncertainty or excessive risk.
B) the charging of interest.
C) the encouragement of risk sharing.
D) a form of gambling.

Question 30

What is the main characteristic of legal structures across the world?

A) Large share ownership
B) Multinational companies
C) Limited liability
D) Small share ownership

Question 31

The Islamic Finance Principals include different statements, which of the following is not one of them?

A) The charging of interest (riba) is prohibited.
B) Risk sharing is to be encouraged.
C) Financing can be based on financial assets.
D) No banned ('haram') investments.