Select the radio button corresponding to your choice of answer for each question, and then click on ‘Submit Answers’ to find out how many you answered correctly.

1			External costs arise where:
			A)	a company sub-contracts a production task to an external supplier
			B)	a company sub-contracts revenue collection to an external supplier
			C)	a company causes other people to incur costs for which they receive no benefit
			D)	a company produces benefits for which recipients bear no cost
2			External benefits arise where
			A)	a company sub-contracts a production task to a supplier
			B)	a company sub-contracts revenue collection to an external supplier
			C)	a company causes other people to incur costs for which they receive no benefit
			D)	a company produces benefits for which recipients bear no cost
3			Whether a cost is external or internal to a company is essentially dependent upon:
			A)	the level of productivity in an economy
			B)	the legislation of a country
			C)	a firm’s internal costing system
			D)	a firm’s auditing system
4			Corporate social responsibility can be understood in the context of Maslow's hierarchy of needs. The emergence of such an approach would suggest that consumers are increasingly at which level of the hierarchy?
			A)	physiological
			B)	social
			C)	self-esteem
			D)	self-actualisation
5			Which of the following is NOT generally accepted in most western countries as an objective of good corporate governance?
			A)	to make the maximum possible profits
			B)	to have good internal control systems
			C)	to split the roles of Chief Executive and Chairman
			D)	to recognise employees as important stakeholders in organisations
6			Business ethics is essentially about:
			A)	universal codes of business practice
			B)	culturally conditioned agreement on what constitutes right and wrong
			C)	truthfulness to a firm's customers
			D)	honesty to a firm’s customers
7			Which of the following best describes the concept of ’stakeholders’ in an organisation?:
			A)	Individuals and organisations who are owed money by a company
			B)	Investment trusts who own a stake in quoted companies
			C)	Private individuals whose shares give them a stake in the business
			D)	Anybody who is affected by the activities of an organisation
8			Taken to an extreme, green consumerism by buyers of holidays would imply that buyers:
			A)	choose 'eco-friendly’ holidays
			B)	stay at home
			C)	take fewer holidays
			D)	visit more nature reserves
9			A soft drinks manufacturer is the first in its sector to adopt higher ecological standards in the bottles that it uses. In doing so, the manufacturer can benefit from all of the following EXCEPT:
			A)	it can learn from other companies’ development mistakes
			B)	it may gain public relations advantages
			C)	it may achieve cost savings ahead of competitors
			D)	it can learn faster than their competitors, ahead of compulsion
10			Which of the following is likely to be the most cost-effective method for a pressure group campaigning to minimise the effects of proposed new taxes on air travel to change government policy?
			A)	giving away free tickets to overcome the proposed tax
			B)	being regularly consulted by policy makers
			C)	direct action
			D)	creating petitions