Home Tuitions

Social Responsibility of Business and Business ethics

MCQ Based Questions on Class 11 Business studies for chapter-6 Social Responsibility of Business and Business ethics

Find below MCQ Based Questions on Class 11 Business studies for chapter-6 Social Responsibility of Business and Business ethics all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer. 

Find MCQ questions for class 11 Business studies-6 Social Responsibility of Business and Business ethics

Business Studies - MCQ on Social Responsibility of Business and Business ethics

Class XI

Q. 1. Social responsibility is

I. Same as legal responsibility

II. Broader than legal Responsibility

III. Narrower than Legal responsibility

IV. None of them


.II. Broader than legal Responsibility

Explanation: Social responsibility of business means obligation to act in a manner which will serve the best interest in the society

Q. 2. If business is to operate in a society which is full of diverse and

complicated problems, it may have

I. Little chance of success

II. Great chance of success

III. Little chance of failure

IV. No relation with success or failure.


III.Little chance of success

Explanation: If a business is operating in a society which has a lot of problems then it is very difficult for a business to flourish

Q. 3. Business people have the skills to solve

I. All social problems

II. Some social problems

III. No social problems

IV. All economic problems


II Some social problems

Explanation: Business people can solve some social problems and he can contribute by performing his duties by keeping in mind the society

Q. 4. An enterprise must behave as a good citizen is an example of its Responsibility towards

I. Owners

II. Workers

III. Consumers

IV. Community


IV Community

Explanation: Business is an essential part of community and it should behave in a right manner so that community can be benefited

Q. 5. Environmental protection can best be done by the efforts of

I. Business people

II. Government

III. Scientists

IV. All the people


IV All the people

Explanation: The whole community or societies have to come together and work for the protection

Q. 6. Carbon monoxide emitted by automobiles directly contributes to

I. Water pollution

II. Noise pollution

III. Land pollution

IV. Air pollution


IV Air pollution

Explanation: Air Pollution is caused by carbon monoxide which is formed by incomplete burning

Q. 7. Which of the following can explain the need for pollution control?

I. Cost savings

II. reduced risk of liability

III. Reduction of health hazards

IV. All of them


. III. Reduction of health hazards

Explanation: Due to pollution a lot of health problem has occurred so there is a need of pollution control.

Q. 8. Which of the following is capable of doing maximum good to society?

I. Business success

II. Laws and regulations

III. Ethics

IV. Professional management


II Laws and regulations

Explanation: The laws, rules and regulations is a frame in which the society has worked

Q. 9. Ethics is important for

I. Top management

II. Middle-level managers

III. Non-managerial employees

IV. All of them


IV All of them

Explanation: Ethics is important for all the managers of the management

10. Which of the following alone can ensure effective ethics programme in a

Business enterprise?

I. Publication of a code

II. Involvement of employees

III. Establishment of compliance mechanisms

IV. None of them


III.Establishment of compliance mechanisms

Explanation: If the compliance is strong then the ethics programme in a business enterprise can be implemented properly.

Q. 11.Social responsibility has a main feature

I. Involuntary action

II. Voluntary action

III. Compulsory action

IV. None


II Voluntary action

Explanation: Social responsibility involves an element of voluntary action on the part of business people for the benefit of society.

Q. 12.What are the main arguments against social responsibility?

I. Violation of profit maximization objective

II. Burden on consumers

III. Lack of social skills

IV. All



Explanation: Social Responsibility is a barrier in profit, it is burden on consumers and there is lack of social skills

Q. 13.What is the principle of caveat emptor?

I. Let the seller be aware

II. Let the community be aware

III. Let the industry be aware

IV. Let the buyer be aware


IV Let the buyer be aware

Explanation: This principle states that the buyer should beware of the facts of products and the seller should not hide anything about the product.

Q. 14.Social interest and business interest is

I. Supplementary to each other

II. Complementary to each other

III. Contradictory to each other

IV. One and the same thing


II.Complementary to each other

Explanation: Both the interests are totally opposite business interest is profit maximization and social interest is for the betterment of the society.

Q. 15 .What is economic responsibility?

I. Business within rules and regulation

II. Selling quality goods and earning profit

III. Developing society

IV. None


II selling quality goods and earning profit

Explanation: Its primary social responsibility is economic i.e., produce goods and services that society wants and sell them at a profit.

Q. 16.What is a legal responsibility?

I. Trading with rules

II. Earning profit and paying tax

III. Developing legal awareness among people

IV. None


I Trading within rules

Explanation: Legal responsibility means doing business according to rules and regulation

Q. 17.Providing charitable contributions to educational institutions come under which responsibility?

I. Economic Responsibility

II. Ethical Responsibility

III. Legal responsibility

IV. Discretionary responsibility


IV.Discretionary responsibility

Explanation: This refers to purely voluntary obligation that an enterprise assumes,

Q. 18.What is the responsibility of business?

I. A fair return to the shareholders

II. Interest to shareholders

III. Providing their shares back

IV. Forcing them to purchase more shares


.I.A fair return to the shareholders

Explanation: A business is responsible to provide a good return to their shareholders and declare dividend time it time

Q. 19. Environment is defined as

I. Nature

II. Total man’s surrounding

III. Trade and commerce

IV. Social circle


II Total man’s surrounding

Explanation: Εnvironment is defined as the totality of man’s surroundings — both natural and man-made.

Q. 20.What is the major cause of deteriorating the environment?

I. Industrial activities

II. Social Activities

III. Trading

IV. Human development activities


I Industrial activities

Explanation: It is widely recognized that the quality of the environment is fast deteriorating particularly due to industrial activity.

Q. 21.Pollution changes the

I. Physical, characteristics

II. Chemical characteristics

III. Biological characteristics

IV. All



Explanation: Pollution changes all the characteristics of the product.

Q. 22. What is the main cause of pollution

I. Waste

II. Trade

III. Production

IV. Consumption


I. Waste

Explanation: Waste is the major cause which polluted the environment so managing waste is a major challenge

Q. 23.What is the effect of depletion of ozone layer?

I. Global Cooling

II. Global warming

III. Green house effect

IV. Environmental changes


II.Global warming

Explanation: Due to hole in ozone layer direct sunlight reaches the earth so it causes global warming

Q. 24.What problems are identified by United Nations which causes environmental degradation

I. Ozone depletion

II. Global warming

III. Solid and hazardous wastes

IV. All


IV All

Explanation: The environmental degradation caused by depletion of ozone layer, global warming and solid and hazardous wastes.

Q. 25.loss of hearing may be caused by

I. Air pollution

II. Water Pollution

III. Noise Pollution

IV. None


III Noise Pollution

Explanation: The noise pollution is increasing tremendously so hearing loss is caused by Noise pollution

Q. 26 Why there is a need of pollution control?

I. Reduction of health hazards

II. Unfit to preserve normal life.

III. Cost expenditure.

IV. Physical,


.I.Reduction of health hazards

Explanation: Due to pollution a lot of health problems have arised so pollution should be controlled

Q. 27.Which one does not fall into the business ethics

I. Supply goods and services

II. Earn profit without development.

III. May be good in terms of economic Performance

IV. Concerned with establishing linkages between individual good and social good.


IV Concerned with establishing linkages between individual good and social good.

Explanation Ethics is concerned with what is right and what is wrong in human behavior judged on the basis of a standard form of conduct/behavior of individuals,

Q. 28.Social responsibility towards different interest groups does not involve

I. shareholders or owners,

II. workers,

III. consumers and

IV. Indian Cricket Team


IV.Indian Cricket Team

Explanation: Indian Cricket team of a producer does not care about Indian cricket team

Q. 29.Rights relating to life, liberty, equality and dignity of the individual guaranteed by the constitution is called

I. Social Responsibility

II. Economic Responsibility

III. Human rights

IV. Ethics


III.Human rights

Explanation: Human rights mean the rights relating to life, liberty, equality and dignity of the individual guaranteed by the constitution and enforceable by courts in India.

Q. 30.What is the responsibility of producer towards the Government?

I. Timely payment of taxes

II. Fair terms and conditions

III. No unfair and anti-social practice

IV. Welfare of community


I.Timely payment of taxes is the main responsibility of producer towards government

Explanation: Honest and timely payment of taxes, compliance with laws and government policies

Q. 31 What do you mean by ecology?

I. Relationships of living beings with their natural or physical environment.

II. Relationships of living beings with their physical environment.

III. Relationships of living beings with their chemical and physical environment.

IV. Relationships of non living beings with their natural and physical environment.


.I. Relationships of living beings with their natural or physical environment.

Explanation: Ecology is the relation between the natural and man made environment

Q. 32.What steps should be taken to protect environment?

I. Eco friendly

II. Recycled wastes

III. Modernize plant and machinery

IV. All



Explanation: co friendly or clean and low waste technology should be used by the industrial organization. Industrial wastes should be recycled as far as possible and Plant and machinery should be modernized to minimize pollution.

Q. 33.firm’s interest and the interest of society has given rise to

I. Economic Responsibility

II. Human rights

III. Ethics

IV. Social Responsibility


IV.Social Responsibility

Explanation: Need for social responsibility of business arises both because of firm’s interest and the interest of society.

Q. 34.The social responsibility is important because

I. Justification for existence and growth,

II. long-term interest and image of the firm

III. Overall development

IV. All



Explanation: The social responsibility is very important for coexisting with economic and social, long term interest no regulation

Q. 35.Where was corporate social responsibility originated

I. U.K

II. Germany


IV. Canada



Explanation: It originated in U.S.A where Government had passed Anti-Trust Act against monopolistic practices, so as to protect and improve the welfare of society.

Q. 36.Corporate Governance was originated in

I. U.K

II. Germany


IV. Canada


I. U.K

Explanation: It originated in the U.K. for the purpose of improved

Accountability of directors

Q. 37.The environment is protected under:

I. The Environment (Protection) Act, 1986

II. The Forests (Conservation Act, 1980 amended in 1988

III. The Wildlife Protection Act, 1972

IV. The Air (Prevention and Control of Pollution) Act, 1974 amended in 1974 and 1988


I.The Environment (Protection) Act, 1986

Explanation: This act was made to protect the environment which was made in 1986.



Q. 38.What is EAP

I. Environment Appreciation Plan

II. Environment Action Plan

III. Environment against pollution

IV. Environment Action pollution


Environment Action Plan

Explanation: This was made to protect environment and take necessary plans

Q. 39.Which of the following is not a social responsibility of Business?

I. Economic Responsibility

II. Legal Responsibility

III. Ethical responsibility

IV. Capital Responsibility


IΙ. Legal Responsibility

Explanation: There is no such responsibility and it does not come under social responsibility.

Q. 40.Which of the following is not improved by ethical business behavior?

I. Public Image

II. People’s confidence

III. Greater success

IV. Government’s trust


IV. Government’s trust

Explanation: Government trust is not earned by a business if it is running ethically.