Lesson 4.4.2

4.4.2 Ethics of multinational corporations Quiz: Pearson Edexcel Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.4.2, Ethics of multinational corporations: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 4: Global business, written with Revision Ninja.

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The 20 questions

  1. What causes a stakeholder conflict within a multinational corporation?

    • Equal dividend payments
    • Opposing stakeholder goals
    • Expanding market share
    • High profit margins

  2. Which pay practice by a multinational is considered an ethical concern?

    • Equal pay schemes
    • Minimum wage compliance
    • Below living wage
    • Performance bonuses

  3. What major environmental concern is directly caused by uncontrolled factory air emissions?

    • Deforestation
    • Illegal toxic dumping
    • Atmospheric pollution
    • Water eutrophication

  4. What is the primary objective of ethical waste disposal for a multinational?

    • Minimising environmental damage
    • Offshore waste dumping
    • Maximising profit margins
    • Avoiding local employment

  5. Why is child labour in a multinational's supply chain an ethical issue?

    • Exploitation of children
    • Equal employment opportunity
    • Excessive overtime pay
    • High wage costs

  6. How should an ethical multinational respond to labour exploitation in its supply chain?

    • Audit and reform
    • Ignore the allegations
    • Blame local consumers
    • Cut public relations

  7. Which marketing activity is an example of misleading product labelling?

    • Accurate ingredient lists
    • Visible usage instructions
    • False organic claims
    • Clear safety warnings

  8. Which promotional strategy is widely regarded as unethical marketing?

    • Child junk-food marketing
    • Seasonal discount offers
    • Television advertisement campaigns
    • Sponsoring local sports

  9. A worker earns 2.50 an hour and works 60 hours a week for 4 weeks. What is the total pay for the four weeks?

    • 6,000
    • 240
    • 150
    • 600

  10. Why are multinationals held ethically responsible for environmental harm caused by suppliers?

    • Supply chain accountability
    • Guaranteed government subsidies
    • Reduced import tariffs
    • Unlimited legal liability

  11. Which process checks that offshore suppliers follow an MNC's ethical standards?

    • Transfer pricing
    • Supply chain audits
    • Price skimming
    • Market segmentation

  12. Which stakeholder group prioritises maximum dividend payments over worker pay rises?

    • Pressure groups
    • Shareholders
    • Local communities
    • Consumers

  13. Providing inaccurate ingredient details on packaging is an ethical issue in which area?

    • Marketing
    • Supply chain
    • Transfer pricing
    • Tax avoidance

  14. Relocating factories to countries with lax pollution laws is an ethical issue regarding what?

    • Environmental impact
    • Predatory pricing
    • Product labelling
    • Transfer pricing

  15. Unfair treatment of workers through extremely low pay and dangerous conditions is known as what?

    • Transfer pricing
    • Labour exploitation
    • Joint venture
    • Market orientation

  16. What document outlines required ethical standards and working conditions for MNC suppliers?

    • Code of conduct
    • Income statement
    • Articles of association
    • Balance sheet

  17. Targeting vulnerable children with promotional campaigns for unhealthy snacks is an example of what?

    • Transfer pricing
    • Inappropriate marketing
    • Labour exploitation
    • Tax avoidance

  18. A factory produces 1,200 tonnes of waste a month, and 25% is recycled. How much waste goes to landfill?

    • 300 tonnes
    • 120 tonnes
    • 1,500 tonnes
    • 900 tonnes

  19. High executive bonuses combined with low employee wages creates a conflict between which two stakeholders?

    • Shareholders and directors
    • Managers and workers
    • Customers and suppliers
    • Government and creditors

  20. Why might an MNC adopt lower ethical standards in developing nations?

    • Weaker local laws
    • Stronger trade unions
    • Higher tax rates
    • Fixed exchange rates

All Pearson Edexcel Business quizzes