All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Ethics & Corporate Governance - Question Paper
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ques. Paper
Business Ethics & Corporate Governance (MB3I2): October 2007
part A : Basic Concepts (30 Marks)
• This part consists of ques. with serial number one - 30.
• Answer all ques..
• Each ques. carries 1 mark.
• Maximum time for answering part A is 30 Minutes.
1. Mr. Anand Desai is in an ethical dilemma regarding purchase of a machine. If he buys the machine from Best Electronics, who are ready to provide five years warranty, he will not get any monetary benefit for himself. Therefore he decides to buy the machinery from GL Electronics, who is giving only 1year warranty, in order to gain the personal monetary benefit. Which of the subsequent factors involved in decision-making affects the ethical dilemma of Mr. Anand Desai?
(a) Concentration of effect
(b) Time interval
(c) Proximity
(d) Social agreement
(e) Magnitude of consequence.
2. When the implications and consequences of managers’ decisions become more evident, managers are faced with the challenge of ethical dilemma. To avoid ethical dilemmas managers can follow the approaches by Clutterbuck and Drummond and Carmichael’s. Which of the subsequent does not belong to Clutterbuck’s approach?
(a) It includes ethics in recruitment criteria
(b) It uses reward and punishment mechanisms
(c) It establishes openness and transparency into decision-making processes
(d) It provides mechanism for negotiating concerns
(e) It draws up personal and corporate ethics checklist.
3. When a company adopts an anti-pollution environment policy, it is stated to be ‘going green’. Organizations adopt green initiative due to which of the subsequent reasons?
I. Economic benefits from increased efficiency.
II. Competitive advantage through innovation.
III. Set a standard or code for moral behavior.
IV. Public image.
(a) Only (I) above
(b) Only (II) above
(c) Both (II) and (III) above
(d) (I), (II) and (IV) above
(e) (I), (III) and (IV) above.
4. If Vijay Motors is taken over by Vishnu Motors, Mr. Feroz and many other top executives are going to lose their jobs. Therefore in order to discourage the unwanted takeover attempt, the management of Vijay Motors gave stock options, bonuses and severance pay to all the top executives. By adopting which of the subsequent techniques, was the management of Vijay Motors able to protect themselves from hostile takeover?
(a) Golden parachute
(b) Sandbag
(c) Greenmail
(d) People pill
(e) Poison pill.
5. The primary role of the board is to supervise the quality of strategic thinking of the executive committee and performs its role in strategy development at different levels. Structural and portfolio level of strategic thinking involves discussions among the board of directors and the management, relating to which of the following?
| Earning: Approval pending. |
