Entrepreneurs exhibit a strong “action bias.” This means:

They tend to act quickly without considering ethical implications

Social entrepreneurship focuses on:

Addressing social problems through business solutions

Which of the following is an example of an unethical business practice in startups?

Overstating product capabilities to secure funding

An entrepreneur must make a quick decision about a product's safety. This demonstrates which aspect of entrepreneur

Action bias, focusing on rapid decision-making instead of ethical analysis

What is one of the key reasons SMEs rely on ethical business practices?

They must gain and retain stakeholder trust to maintain legitimacy

Ethical leadership within startups leads to:

Higher employee retention and morale

Which of the following best describes the environment in which entrepreneurs operate?

Dynamic and often ethically challenging

Ecopreneurship focuses on:

Business actions that preserve biodiversity and ecosystems

Ethical conflicts in entrepreneurship often arise from:

The need to balance profit with stakeholder interests

Ethical business practices contribute to long-term success by:

Building trust with stakeholders

The ethical dilemma of conflict of interest occurs when:

Entrepreneurs prioritize personal gains over stakeholder interests

Research suggests that entrepreneurs are more likely to:

Engage in ethically questionable behavior due to their highrisk environment

Trust and reputation are important for entrepreneurs because:

They help attract loyal customers and investors

Collective social entrepreneurship differs from traditional social entrepreneurship because:

It involves multiple actors collaborating on social issues

According to research, entrepreneurs are more likely than corporate managers to:

Use higher moral imagination in decision-making

Environmental entrepreneurship refers to:

Business practices aimed at sustainable development

What is a key ethical challenge in social entrepreneurship?

Ensuring financial sustainability while maintaining social impact

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MGMT3035-W25-Topic_9-Ethics_in_Entrerpreneurship

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Questions 23

Answers

1
Entrepreneurs exhibit a strong “action bias.” This means:
They tend to act quickly without considering ethical implications
They always act with complete ethical awareness
They are highly risk-averse
They prefer detailed planning over quick decision-making
2
Social entrepreneurship focuses on:
Addressing social problems through business solutions
Fun and social activities
Building a business through personal connections
Reducing competition in the marketplace
3
Which of the following is an example of an unethical business practice in startups?
Overstating product capabilities to secure funding
Boasting about past accomplishments
Hiring homeless or disadvantaged people
Intimidating potential customers into making purchases
4
An entrepreneur must make a quick decision about a product's safety. This demonstrates which aspect of entrepreneur
Action bias, focusing on rapid decision-making instead of ethical analysis
Ethical egoism, prioritizing personal gain
Utilitarianism, weighing the greatest good for the greatest number
Deontological ethics, adhering strictly to moral duties and rules
5
What ethical principle is particularly relevant in financial forecasts and investor relations?
Honesty and transparency
Reparation
Beneficence
Liberty
6
What factor has a significant influence on the ethical climate of a startup?
Government regulations
A company’s marketing strategies
The ethics of competitors
The values of the entrepreneur
7
What is one of the key reasons SMEs rely on ethical business practices?
Their small size means ethical issues are less significant
Ethical concerns do not affect business reputation
They must gain and retain stakeholder trust to maintain legitimacy
They have stricter government oversight compared to large corporations
8
Which ethical philosophy is most associated with entrepreneurs?
Ethical egoism
Deontology
Utilitarianism
Virtue ethics
9
Ethical leadership within startups leads to:
Short-term business growth with no long-term benefits
Lower transparency with stakeholders
Immediate cost reductions
Higher employee retention and morale
10
Which of the following best describes the environment in which entrepreneurs operate?
Dynamic and often ethically challenging
Governed by strict regulations that prevent ethical issues
Highly structured and risk-averse
Less innovative than corporate environments
11
Entrepreneurs may misrepresent financial forecasts to attract investors. This violates the ethical principle of:
Non-maleficence
Respectfulness
Liberty
Transparency
12
Ecopreneurship focuses on:
Business actions that preserve biodiversity and ecosystems
Emphasizing ecological friendliness in marketing campaigns
Doing business primarily with environmental groups
Greenwashing among start ups
13
Ethical conflicts in entrepreneurship often arise from:
The tension between self-interest and duty
The lack of legal requirements for startups
Power struggles within the firm
The need to balance profit with stakeholder interests
14
The ethical principle of justice and fairness is most relevant to:
Cost-cutting strategies
Investor relations and employee treatment
Financial fraud prevention
Marketing and advertising only
15
Ethical business practices contribute to long-term success by:
Setting people up for the inevitable betrayal
Building trust with stakeholders
Fostering complacency in the competition
Reducing costs in the short term
16
A company delaying supplier payments to extend cash flow is engaging in:
Cash-to-cash cycle management
Creative Accounting
Philanthropy
Bootstrapping
17
The ethical dilemma of conflict of interest occurs when:
Ethical principles are consistently followed
Entrepreneurs prioritize personal gains over stakeholder interests
A company is transparent about financial difficulties
Business decisions align with social responsibilities
18
Research suggests that entrepreneurs are more likely to:
Follow strict corporate ethical guidelines at all times
Prioritize collective welfare over personal gains
Engage in ethically questionable behavior due to their highrisk environment
Completely avoid ethical dilemmas
19
Trust and reputation are important for entrepreneurs because:
Startups are not concerned with ethics
Entrepreneurs always operate in isolation
Entrepreneurs cannot afford advertising
They help attract loyal customers and investors
20
Collective social entrepreneurship differs from traditional social entrepreneurship because:
It is based on permaculture principles
It focuses exclusively on environmental problems
It is organized around communist ideals
It involves multiple actors collaborating on social issues
21
According to research, entrepreneurs are more likely than corporate managers to:
Follow strict ethical codes at all times
Avoid ethical challenges completely
Ignore the interests of stakeholders
Use higher moral imagination in decision-making
22
Environmental entrepreneurship refers to:
Doing business primarily with environmental groups
A)Selling home décor products that create a pleasant home environment
Business practices aimed at sustainable development
Exploiting the natural environment for profit
23
What is a key ethical challenge in social entrepreneurship?
Avoiding collaboration with other organizations
Ensuring financial sustainability while maintaining social impact
Exploiting social relations
Managing social decision-making processes

MGMT3035-W25-Topic_9-Ethics_in_Entrerpreneurship Flashcards | StudBud