This is Set I of our MCQ practice for CSE332 Industry Ethics and Legal Issues. It covers the first unit: what ethics actually means, how it differs from morals and law, moral relativism, ethical dilemmas and the usual steps for taking an ethical decision.
We rewrote this set in October 2026. The old version had a few wrong answers and some questions that depended on outdated trivia, so every question is new and each answer now comes with a short reason.
How to use this set: pick an option for each question. You will see straight away whether it is right, with a short note on why. There are 15 questions.
What this set covers
- Meaning and origin of the word ethics
- Ethics vs morals vs law
- Moral relativism and moral absolutism
- Branches of ethics: meta, normative and applied
- Ethical dilemmas and values
- Steps in ethical decision-making
Industry Ethics and Legal Issues MCQs with answers and explanations
Q1. The word ethics comes from the Greek word ethos, which means:
a) Profit
b) Law
c) Character or custom
d) Punishment
Q2. Which statement best describes the difference between ethics and law?
a) Law is enforced by the state with penalties, while ethics depends mainly on conscience and social approval
b) Ethics and law always say exactly the same thing
c) Law covers personal beliefs, ethics covers only government rules
d) Ethics is written down by Parliament, law is unwritten
Q3. A company legally uses a tax loophole to pay almost no tax while laying off staff. Many people still criticise it. This shows that:
a) Ethics has no connection with business
b) An action can be legal but still seen as unethical
c) Anything legal is automatically ethical
d) Laws are always stricter than ethics
Q4. Morals are best described as:
a) Penalties given by a court
b) Rules passed by a legislature
c) Technical standards for software
d) Personal beliefs about right and wrong, shaped by upbringing, religion and culture
Q5. Moral relativism holds that:
a) Morality is the same as religion
b) Only laws decide what is moral
c) Right and wrong depend on the culture or individual, so there is no single universal standard
d) Some acts are wrong in every situation without exception
Q6. The view that certain acts, such as torturing an innocent person, are wrong in every situation is called:
a) Moral absolutism
b) Cultural pluralism
c) Ethical egoism
d) Moral relativism
Q7. An ethical dilemma is a situation where:
a) A person breaks the law on purpose
b) Only money is at stake
c) A person must choose between options that each have moral reasons behind them, and no choice is fully right
d) The right answer is obvious and easy to follow
Q8. Riya sees her close friend copying in an exam. She values both loyalty to her friend and honesty. Her situation is mainly an example of:
a) A legal dispute
b) A conflict between personal values, that is, an ethical dilemma
c) Moral relativism
d) A trade secret violation
Q9. The branch of ethics that studies what words like good, right and ought actually mean is:
a) Descriptive ethics
b) Applied ethics
c) Meta-ethics
d) Normative ethics
Q10. Business ethics, medical ethics and computer ethics are all examples of:
a) Meta-ethics
b) Moral relativism
c) Applied ethics
d) Descriptive ethics
Q11. Integrity, as an ethical value, means:
a) Earning the highest possible profit
b) Always obeying the boss without question
c) Avoiding all risk
d) Consistency between what a person believes and how they actually act
Q12. In most ethical decision-making frameworks, which step comes first?
a) Recognise that there is an ethical issue
b) Announce the decision publicly
c) Act on the decision
d) Reflect on the outcome
Q13. Before taking a decision, a manager asks: "Would I be comfortable if this appeared on the front page of a newspaper?" This is known as:
a) The publicity or newspaper test
b) The market test
c) The cost test
d) The legal test
Q14. Which of these is the main purpose of a company code of ethics?
a) To advertise the company's products
b) To guide employees on expected behaviour and values in situations they may face
c) To fix the salary of employees
d) To replace the laws of the country
Q15. Values in ethics are best described as:
a) Market prices of shares
b) Laws that apply only to companies
c) Rules that change every day
d) Lasting beliefs about what is important and worth pursuing, such as honesty and fairness
Quick revision notes
- Ethics comes from the Greek ethos (character, custom). It is the systematic study of right and wrong conduct.
- Morals are personal beliefs; ethics is the reasoned set of principles; law is enforced by the state with penalties.
- Legal does not always mean ethical, and some ethical acts (like civil disobedience) may break the law.
- Relativism: morality depends on culture or person. Absolutism: some acts are always wrong.
- Branches: meta-ethics (meaning of moral terms), normative ethics (what we ought to do), applied ethics (specific fields such as business or computing).
Frequently asked questions
Is ethics the same as law?
No. Law is a set of rules enforced by the state, with penalties for breaking them. Ethics is broader and is enforced mostly by conscience and social pressure. The two overlap a lot, but an act can be legal and still unethical.
What is the easiest way to remember the difference between ethics and morals?
Think of morals as what you personally believe is right, and ethics as the reasoned principles a group or profession agrees to follow. A doctor may have private morals, but medical ethics applies to every doctor.
Are these questions enough for the CSE332 exam?
They cover the first unit well. Use the other sets in this series for ethical theories, professional codes, intellectual property, cyber law, entrepreneurship and company law.
Next: Set 2 →
See everything in one place: MCQ Practice
Frequently asked questions
What does CSE332 Industry Ethics and Legal Issues cover?
It covers professional and business ethics, codes of conduct, intellectual property rights (patents, copyright, trademarks), cyber law in India including the IT Act 2000, and ethical issues such as privacy, data security and plagiarism in the IT industry.
How should I use these MCQ sets?
Attempt every question before checking the answer, note the ones you get wrong, and revise those topics from your course notes. Then move to the next set in the series.
Are these questions from the actual exam?
No. They are practice questions written to match the course syllabus. Use them alongside your class material and previous papers.
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