CMAT Practice Quiz

Question 1

A startup claims its product is "100% eco-friendly" because its packaging is recyclable, even though the product itself contains non-biodegradable components. Which ethical issue is most directly involved?

Accepted Answer

Greenwashing

Question 2

A social enterprise must choose between two suppliers: Supplier A is cheaper but has repeated labor safety violations; Supplier B is costlier but complies with fair labor standards. From a CSR perspective, what is the most ethical decision principle?

Accepted Answer

Choose the supplier with better labor practices despite higher cost

Question 3

A founder is offered a government contract after an intermediary hints that an unofficial payment would "speed up approval." Which action is ethically and legally most appropriate?

Accepted Answer

Refuse the payment, document the interaction, and follow formal channels

Question 4

A company closes a profitable rural unit and shifts production to a city plant to improve margins. The closure will severely affect the local community that depends on the unit. Which approach best reflects advanced CSR decision-making?

Accepted Answer

Assess stakeholder impact, consult the community, and design mitigation such as reskilling or phased transition

Question 5

An entrepreneur discovers that a wearable device collects more user data than is necessary for its core function. Under the principle of data ethics, what is the most appropriate action?

Accepted Answer

Limit collection to data necessary for the stated purpose and obtain informed consent

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