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Module-wise Marks Distribution I-5
Previous Exams Trend Analysis I-7
Module-wise Comparison with Study Material I-11
SECTION A
COMMERCIAL LAWS
SECTION B
LAWS
SECTION C CORPORATE LAWS
SECTION
BUSINESS ETHICS & EMOTIONAL INTELLIGENCE
CHAPTER 13.1
ETHICS - MEANING, IMPORTANCE & NATURE
A Quick Review
Ethics is the basic concepts and fundamental principles of decent human conduct. It includes the study of universal values of such as the essential quality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and increasingly, also for the natural environment. Ethics are the set of moral principles that guide a person’s behaviour.
While ethical beliefs are held by individuals, they can also be reflected in the values, practices, and policies that shape the choices made by decision makers on behalf of their organizations.
PAST EXAMINATION QUESTIONS
OBJECTIVES
Fill in the blanks:
Q. 1. The word ethics stems from the Greek word_______________.
Ans. Ethike
[Dec. 2017, 1 Mark]
Q. 2. Ethics are set of normal principles that guide a person’s ______________.
Ans. Behaviour
[Dec. 2022, 1 Mark]
Q. 3. The ethical operation of a company is directly related to _________ in both short & long-term. [Dec. 2023, 1 Mark]
Ans. Goals
Multiple Choice Questions:
Q. 1. Business ethics are gaining importance because of:
(a) Smooth functioning
(b) Good image
(
SECTION D : BUSINESS ETHICS
c) The growth of consumer movement
(d) Increasing pro t
[Dec. 2013, 1 Mark]
Q. 2. Which of the following statement is correct about business ethics?
(
a) Social responsibility and business ethics are considered different concepts
(
b) Making higher pro ts should be the main objective of a business
(
c) A business may sustain only if it cares for society
(
d) Companies making ethical investments may not be able to compete
[Dec. 2013, 1 Mark]
Q. 3. Business ethics is based on well accepted:
(
a) Moral and Social Values
(
b) Social Values only
(
c) Moral Values only
(d) None of the above
Q. 4. The crucial step in understanding business ethics is:
(
a) Establishing codes of ethics
(
b) Learning to recognize ethical issues
(
c) Having ef cient operations
(
d) Implementing strategic plan
[June 2014, 1 Mark]
[Dec. 2014, 1 Mark]
Q. 5. The study of ethics can be divided into four operational areas namely meta ethics, normative ethics, descriptive ethics and:
(
a) Positive ethics
(
(
(
b) Physical ethics
c) Applied ethics
d) Natural ethics
[June 2015, 1 Mark]
Q. 6. A proper foundation of ethics requires a standard of _______ to which all goals and actions can be compared to.
(
(
(
(
a) Value
b) Living
c) Life
d) Speech
[Dec. 2017, 1 Mark]
Q. 7. Ethics are the set of moral principles that guide a person’s:
(
(
(
a) Behaviour
b) Philosophy
(c) Religion
d) Profession
Q. 8. Business ethics call for avoidance of:
(a) Self-interest
(
b) Competition
[Dec. 2018, 1 Mark]
(
(
c) Monopoly
d) Publicity
[July 2023, 1 Mark]
Q. 9. Selflessness means that the holders of public office should act solely in the terms of the:
(
a) Government interest
(
b) Public interest
(
c) Company interest
(
d) All of the above
Q. 10. Moral management requires ethical:
(
a) Customer
(
b) Market
(
c) Leadership
(
d) Producer
[Dec. 2023, 2 Marks]
[Dec. 2023, 2 Marks]
Q. 11. A proper foundation of ethics requires a standard of ______to which all goals & actions can be compared to.
(
a) Value
(
b) Living
(
c) Lifes
(
d) Speech
[Dec. 2023, 1 Mark]
Q. 12. Which one of the following is not an attribute of emotional intelligence?
(
(
(
(
a) Self-management
b) Social awareness
c) Corporate management
d) Relationship management
ANSWERS:
THEORY QUESTIONS
[June 2024, 2 Marks]
Q. 1. Write short note on: Importance of ethics [June 2019, 5 Marks] Or
Discuss the importance of ethics. [Dec. 2021, 6 Marks]
Ans. Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random and aimless. There would be no way to work towards a goal because there would be no way to pick between a limitless numbers of goals.
SECTION D : BUSINESS ETHICS
Even with an ethical standard, we may be unable to pursue our goals with the possibility of success. To the degree which a rational ethical standard is taken, we are able to correctly organize our goals and actions to accomplish our most important values.
Any flaw in our ethics will reduce our ability to be successful in our endeavours.
A proper foundation of ethics requires a standard of value to which all goals and actions can be compared to.
This standard is our own lives, and the happiness which makes them liveable. This is our ultimate standard of value, the goal in which an ethical man must always aim. It is arrived at by an examination of man’s nature, and recognizing his peculiar needs.
A system of ethics must further consist of not only emergency situations, but the day to day choices we make constantly.
It must include our relations to others, and recognize their importance not only to our physical survival, but to our well - being and happiness.
It must recognize that our lives are an end in themselves, and that sacrifice is not only not necessary, but destructive.
Q. 2. What is Value Chain? What are the new themes and challenges that managers face currently?
[Dec. 2019, 9 Marks]
Ans. Value chain is a visualization of complete business as a sequence of activities in which usefulness is added to the products or services produced and sold by an organization.
Management accountants provide decision support for managers in each activity of value chain.
The design of management accounting system has to take into consideration the decision needs of the managers.
It has to take into consideration the new themes and challenges that manager’s face currently also:
Customer focus: The challenge for managers it invest suf cient resources to enhance customer satisfaction. But every action of the organization has to result enhanced pro tability or maintained pro tability for the organization.
Key Success Factors: These are non- nancial factors which have an effect on the economic viability of the organization. Cost, quality, time and innovation are important key success factors. Management accounting systems need to have provisions for tracking the performance of the organization and its divisions as well as competitors on these success factors.
Continuous improvement: Continuous improvement or kaizen is a popular theme. Innovation related to this area in costing is kaizen costing.
Value Chain and Supply Chain Analysis: Value chain as a strategic framework for analysis of competitive advantage was promoted by Michael Porter. Management accountants have to become familiar with the framework and provide information to implement the framework by strategic planners.
Q. 3. Write short note on: Types of ethics. [Dec. 2021, 6 Marks]
Ans.: There are 3 types of ethics:
Meta ethics:
Meta ethics deal with the nature of moral judgment. It looks at the origins and meanings of ethical principles.
Normative ethics:
Normative ethics is concerned with the content of moral judgments and the criteria for what is right or wrong.
Applied ethics:
Applied ethics looks at controversial topics like war, animal rights and capital punishment.
Q. 4. What is Value Chain? What are the new themes and challenges that managers face currently? [July 2023, 8 Marks]
Ans. Value chain is a visualization of complete business as a sequence of activities in which usefulness is added to the products or services produced and sold by an organization
Management accountants provide decision support for managers in each activity of value chain
The design of management accounting system has to take into consideration the decision needs of the managers.
It has to take into consideration the new themes and challenges that manager ’ s face currently also:
Customer focus: The challenge for managers it invest suf cient resources to enhance customer satisfaction. But every action of the organization has to result enhanced pro tability or maintained pro tability for the organization.
Key Success Factors: These are non- nancial factors which have an effect on the economic viability of the organization. Cost, quality, time and innovation are important key success factors. Management accounting systems need to have provisions for tracking the performance of the organization and its divisions as well as competitors on these success factors.
Continuous improvement: Continuous improvement or kaizen is a popular theme. Innovation related to this area in costing is kaizen costing.
Value Chain and Supply Chain Analysis: Value chain as a strategic framework for analysis of competitive advantage was promoted by Michael Porter. Management accountants have to become familiar with the framework and provide information to implement the framework by strategic planners.
CHAPTER 13.2
THE “7 PRINCIPLES OF PUBLIC LIFE”- SELFLESSNESS, INTEGRITY, OBJECTIVITY, ACCOUNTABILITY, OPENNESS, HONESTY & LEADERSHIP
A Quick Review
The 7 Principles of Public Life were set out by Lord Nolan for the first time in the year 1995. These principles of public life will apply to anyone who works as a public office holder, including elected and appointed to public office either locally or nationally. These principles apply to civil service; local government, the police, the Courts and probation of services, non-departmental public bodies, health, and education, social are care services. These principles also apply to other sector that delivers public services.
The British Government appointed a committee called as Committee on Standards in Public Life to advise the Prime Minister on ethical standards of public life. The Committee was established in October 1994. The term of reference to the committee is
To examine current concerns about standards of conduct of all holders of public of ce, including arrangements relating to nancial and commercial activities; and
To make recommendations as to any changes in present arrangements which might be required to ensure the highest standards of propriety in public life.
The Committee submitted its first report in the year 1995 containing the seven principles of public life. The said principles have been amended over year. The seven principles of public life as amended up to and as on 2015.
PAST EXAMINATION QUESTIONS
OBJECTIVES
Fill in the blanks:
Q. 1. The 7 principles of ___________ were set out by Lord Nolan in 1995.
Ans. Public life [Dec. 2017, Dec. 2018, 1 Mark]
Q. 2. The 7 principles of public life were set out by .
Ans. Lord Nolan [Dec. 2019, 1 Mark]
Multiple Choice Questions:
Q. 1. Holders of public office should take decision solely in terms of the public interest. This principle of public life is called:
(a) Integrity
(b) Accountability
(c) Honesty
(d) Sel essness
[Dec. 2013, 1 Mark]
Q. 2. Out of 7 principles of public life, the principle of objectivity means:
(a) Holders of public of ce should take decisions solely in terms of the public interest.
(
b) In carrying out public business including making public appointments, holders of public of ce should make choices on merit.
(
(
c) Holders of public of ce are accountable for their decision and actions to the public.
d) Holders of public of ce should be as open as possible about all the decisions and actions that they take. [June 2014, 1 Mark]
Q. 3. Holders of public office should not place themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance or their official duties. This principle of public life is called:
(
a) Sel essness
(
b) Honesty
(
c) Objectivity
(
d) Integrity
[Dec. 2015, 1 Mark]
Q. 4. The 7 principles of public life were set out by lord Nolan for the 1st time in:
(
a) 1975
(
b) 1985
(
c) 1995
(
d) 1999
[Dec. 2022, 1 Mark]
Q. 5. Holders of public company must act and take decision impartially, fairly and on the merits using the best evidence and without discrimination & bias. This principle of public life is known as __________.
(a) Honesty
(b) Sel essness
(c) Objectivity
(d) Integrity [June 2024, 2 Marks]
ANSWERS:
THEORY QUESTION
Q. 1. What are the 7 principles of Public life? Explain. [June 2015, 4 Marks] Or
Write short note on: Seven principles of public life. [June 2017, 5 Marks] Or
Discuss the fundamental principles of Ethical Behaviour. [Dec. 2017, 7 Marks]
SECTION D : BUSINESS ETHICS
Ans.
Sel essness: Holders of public of ce should take decisions solely in interest of the public. They should not do so in order to gain nancial or other material bene ts for themselves, their family, or their friends.
Integrity: Holders of public of ce should not place themselves under any nancial or other obligation to outside individuals or
Objectivity: In carrying out public business including making public appointments, awarding contracts, or recommending individuals for rewards and bene ts, holders of public of ce should make choices on merit.
Accountability: Holders of public of ce are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their of ce.
Openness: Holders of public of ce should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
Honesty: Holders of public of ce have a duty to declare any private interests relating to their public duties and to take steps to resolve any con icts arising in a way that protects the public interest.
Leadership: Holders of public of ce should promote and support these principles by sound leadership and prove to be an example in whatever they perform.
