Business & Sustainability | Models, Perspectives & Examples | MCQ
What does sustainability primarily focus on?
a) Profit maximization
b) Environmental protection only
c) Balancing economic, environmental, and social factors
d) Government regulations
Answer: c) Balancing economic, environmental, and social factors
Which of the following is NOT a characteristic of sustainability?
a) Short-term profit maximization
b) Social responsibility
c) Environmental conservation
d) Economic growth with long-term vision
Answer: a) Short-term profit maximization
What is the primary goal of a sustainable business?
a) Increase profits at any cost
b) Maintain long-term balance between people, planet, and profit
c) Focus only on customer satisfaction
d) Follow government regulations strictly
Answer: b) Maintain long-term balance between people, planet, and profit
Sustainability ensures that future generations have:
a) Less access to resources
b) The same or better access to resources
c) No impact on resource availability
d) Greater consumption of natural resources
Answer: b) The same or better access to resources
What is a common misconception about sustainability?
a) It is only about the environment
b) It includes economic and social factors
c) It balances people, planet, and profit
d) It involves ethical business practices
Answer: a) It is only about the environment
A business that is completely driven by profit without considering the environment or society is:
a) A sustainable business
b) A profit-oriented business
c) A non-profit business
d) A government organization
Answer: b) A profit-oriented business
A business that sacrifices profit entirely for environmental causes is:
a) A social enterprise
b) A profit-oriented business
c) A sustainable business
d) A failing business
Answer: a) A social enterprise
A sustainable business model aims to:
a) Focus only on increasing shareholder value
b) Balance profit, people, and planet
c) Ignore financial performance
d) Maximize short-term returns
Answer: b) Balance profit, people, and planet
Which of the following is NOT a characteristic of a sustainable business?
a) Reducing carbon footprint
b) Exploiting natural resources
c) Ethical labor practices
d) Fair wages for employees
Answer: b) Exploiting natural resources
Which of the following factors is most important for sustainable business?
a) Short-term profit maximization
b) Social responsibility and environmental impact
c) Ignoring economic viability
d) Government intervention
Answer: b) Social responsibility and environmental impact
Which of the following is NOT a type of sustainability model?
a) Profit-only model
b) Triple bottom line model
c) Shared value model
d) Corporate Social Responsibility (CSR) model
Answer: a) Profit-only model
Corporate Social Responsibility (CSR) is an example of which type of sustainability model?
a) Shareholder-driven model
b) Short-term profit maximization model
c) Ethical business model
d) Government-enforced model
Answer: c) Ethical business model
The Shared Value model focuses on:
a) Creating value for both business and society
b) Only increasing business profit
c) Government regulations
d) Ignoring stakeholders
Answer: a) Creating value for both business and society
Which sustainability model balances environmental, economic, and social aspects?
a) Triple Bottom Line
b) Profit Maximization Model
c) Shareholder-Driven Model
d) Cost-Cutting Model
Answer: a) Triple Bottom Line
What is the key difference between CSR and CSV (Creating Shared Value)?
a) CSR is about philanthropy, while CSV is about integrating social impact into core business strategies
b) CSR focuses on profit maximization, while CSV ignores profits
c) CSR is only for non-profits, while CSV is only for corporations
d) CSR has no relation to sustainability
Answer: a) CSR is about philanthropy, while CSV is about integrating social impact into core business strategies
The debate between stakeholder vs. shareholder perspectives is primarily about:
a) Increasing profits at any cost
b) The role of philanthropy in business
c) Environmental protection only
d) Ignoring business growth
Answer: b) The role of philanthropy in business
In sustainability, long-term thinking is typically associated with:
a) Corporate Social Responsibility (CSR)
b) Profit-only business models
c) Short-term market gains
d) Ignoring stakeholders
Answer: a) Corporate Social Responsibility (CSR)
A "win-win" perspective in sustainability refers to:
a) Shared Value approach
b) Losses for business but gains for society
c) Short-term profit maximization
d) Government-imposed regulations
Answer: a) Shared Value approach
What does the term "Additionality" refer to in sustainability?
a) Adding unnecessary business processes
b) Introducing something new that benefits the market and society
c) Increasing production costs
d) Reducing employee benefits
Answer: b) Introducing something new that benefits the market and society
Which of the following is an example of additionality?
a) Investing in renewable energy
b) Increasing advertising budgets
c) Reducing CSR initiatives
d) Cutting employee wages
Answer: a) Investing in renewable energy
A company that develops clean and cost-effective technology follows which model?
a) CSR
b) Shared Value
c) Profit Maximization
d) Traditional Business Model
Answer: b) Shared Value
A business that sets up a hospital for underserved communities is an example of:
a) Corporate Social Responsibility (CSR)
b) Traditional Profit Maximization Model
c) Government Regulation Compliance
d) Market Monopoly
Answer: a) Corporate Social Responsibility (CSR)
If Company A develops a new technology that is both cleaner and less expensive than existing technology, it represents which sustainability model?
a) Corporate Social Responsibility (CSR)
b) Creating Shared Value (CSV)
c) Profit Maximization Model
d) Cost-Cutting Model
Answer: b) Creating Shared Value (CSV)
Company B provides health insurance to an underserved population. This best represents:
a) Market innovation
b) Profit-only business model
c) Stakeholder exploitation
d) Cost-cutting measures
Answer: a) Market innovation
A company investing in renewable energy capacity to reduce dependence on fossil fuels is an example of:
a) Sustainable development
b) Market stagnation
c) Traditional business practice
d) Short-term profit maximization
Answer: a) Sustainable development
A business that donates money for a one-time community event is practicing:
a) Philanthropy
b) Shared Value
c) Additionality
d) Market innovation
Answer: a) Philanthropy
A company that integrates sustainability into its core business strategy rather than treating it as a side activity is following which model?
a) Creating Shared Value (CSV)
b) Traditional Business Model
c) Government-Regulated CSR
d) Short-term Market Strategy
Answer: a) Creating Shared Value (CSV)
A business that sacrifices profit to improve working conditions for employees is:
a) A sustainable business
b) A profit-only organization
c) Ignoring sustainability
d) Focused on shareholder profit
Answer: a) A sustainable business
Company C sets up a 500-bed hospital for underprivileged communities. This is an example of:
a) CSR (Corporate Social Responsibility)
b) Profit Maximization
c) Market Monopoly
d) Venture Capitalism
Answer: a) CSR (Corporate Social Responsibility)
If a company’s decision benefits both the business and society at the same time, it follows:
a) Shared Value
b) Pure Philanthropy
c) Traditional Business Model
d) Government-Imposed Compliance
Answer: a) Shared Value
The stakeholder perspective in sustainability means:
a) Considering the impact on employees, communities, and the environment
b) Maximizing short-term profits for investors
c) Focusing only on regulatory compliance
d) Avoiding corporate social responsibility
Answer: a) Considering the impact on employees, communities, and the environment
The shareholder perspective focuses primarily on:
a) Maximizing financial returns for investors
b) Balancing environmental and social concerns
c) Long-term economic stability
d) Promoting fair wages for employees
Answer: a) Maximizing financial returns for investors
A company that prioritizes short-term profits over long-term sustainability follows which model?
a) Shareholder-driven model
b) Stakeholder-driven model
c) Triple Bottom Line model
d) Shared Value model
Answer: a) Shareholder-driven model
Companies focused on long-term impact and sustainability typically align with:
a) Stakeholder capitalism
b) Short-term investor-driven goals
c) Cost-cutting strategies
d) Profit-only models
Answer: a) Stakeholder capitalism
A company focused on philanthropy rather than profit is likely following:
a) Stakeholder-driven model
b) Shareholder-driven model
c) Traditional business model
d) Market-dominant strategies
Answer: a) Stakeholder-driven model
What is the main idea behind "Additionality" in sustainability?
a) Adding value beyond business-as-usual activities
b) Only focusing on profit maximization
c) Increasing expenses without return
d) Reducing employee benefits
Answer: a) Adding value beyond business-as-usual activities
Which of the following is NOT an example of additionality?
a) Contributing directly to Sustainable Development Goals (SDGs)
b) Addressing underserved markets
c) Increasing executive salaries
d) Investing in market development
Answer: c) Increasing executive salaries
If a company enters an underserved market to provide essential goods, this is an example of:
a) Additionality
b) Cost-cutting measures
c) Market domination
d) Business stagnation
Answer: a) Additionality
"Patient capital" refers to:
a) Long-term investments aimed at social and environmental impact
b) Short-term speculative trading
c) Reducing costs for immediate financial gain
d) Cutting jobs to improve profit margins
Answer: a) Long-term investments aimed at social and environmental impact
Investing in clean energy as part of business expansion is an example of:
a) Sustainable additionality
b) Traditional business expansion
c) Cost-cutting techniques
d) Shareholder-driven practices
Answer: a) Sustainable additionality
Sustainable Development Goals (SDGs) are set by:
a) United Nations (UN)
b) World Bank
c) International Monetary Fund (IMF)
d) World Trade Organization (WTO)
Answer: a) United Nations (UN)
Which of the following SDGs is directly linked to sustainable business practices?
a) Decent work and economic growth
b) No poverty
c) Climate action
d) All of the above
Answer: d) All of the above
What is an example of a business contributing to climate action (SDG 13)?
a) Reducing carbon emissions
b) Increasing packaging waste
c) Using fossil fuels extensively
d) Expanding non-renewable energy sources
Answer: a) Reducing carbon emissions
A company investing in affordable healthcare solutions contributes to which SDG?
a) Good Health and Well-being (SDG 3)
b) Clean Water and Sanitation (SDG 6)
c) Responsible Consumption and Production (SDG 12)
d) Climate Action (SDG 13)
Answer: a) Good Health and Well-being (SDG 3)
If a company creates jobs and ensures fair wages, it is supporting:
a) Decent Work and Economic Growth (SDG 8)
b) Life Below Water (SDG 14)
c) Reduced Inequalities (SDG 10)
d) Affordable and Clean Energy (SDG 7)
Answer: a) Decent Work and Economic Growth (SDG 8)
Which of the following is a key principle of corporate governance in sustainability?
a) Transparency and accountability
b) Maximizing short-term profits
c) Ignoring environmental concerns
d) Reducing employee benefits
Answer: a) Transparency and accountability
Ethical leadership in sustainable business involves:
a) Making decisions that benefit both society and business
b) Prioritizing only shareholder interests
c) Cutting costs at the expense of employee welfare
d) Ignoring regulatory compliance
Answer: a) Making decisions that benefit both society and business
A company that operates with ethical leadership will likely:
a) Ensure fair wages and safe working conditions
b) Exploit natural resources without concern
c) Avoid corporate social responsibility (CSR)
d) Focus only on stock market performance
Answer: a) Ensure fair wages and safe working conditions
What is a major advantage of integrating ethics into business sustainability?
a) Builds long-term trust with stakeholders
b) Reduces innovation in business
c) Increases legal risks
d) Reduces company reputation
Answer: a) Builds long-term trust with stakeholders
Which governance structure is best for supporting sustainability?
a) Boards that consider Environmental, Social, and Governance (ESG) factors
b) Boards that focus only on shareholder returns
c) Leadership teams without stakeholder representation
d) Businesses that ignore sustainability regulations
Answer: a) Boards that consider Environmental, Social, and Governance (ESG) factors
What is a circular economy?
a) An economic system that minimizes waste and maximizes resource efficiency
b) A system focused only on increasing production
c) A business strategy that ignores environmental impact
d) An economic model that only benefits large corporations
Answer: a) An economic system that minimizes waste and maximizes resource efficiency
Which of the following is an example of circular economy principles?
a) Recycling and reusing materials
b) Increasing production waste
c) Relying on single-use plastics
d) Expanding landfill sites
Answer: a) Recycling and reusing materials
What is the main benefit of adopting a circular economy model?
a) Reducing environmental impact and improving efficiency
b) Increasing waste disposal costs
c) Promoting overproduction
d) Reducing product lifespan
Answer: a) Reducing environmental impact and improving efficiency
A company that designs products for durability and recyclability follows:
a) Circular economy principles
b) Traditional wasteful production methods
c) A linear economy approach
d) Short-term cost-cutting strategies
Answer: a) Circular economy principles
In a circular economy, which of the following strategies is prioritized?
a) Reduce, Reuse, Recycle
b) Increase, Consume, Dispose
c) Use, Waste, Replace
d) Extract, Manufacture, Discard
Answer: a) Reduce, Reuse, Recycle
What is the purpose of sustainability reporting?
a) To disclose a company's environmental, social, and governance (ESG) impact
b) To only report financial profits
c) To reduce transparency in corporate decisions
d) To ignore sustainability metrics
Answer: a) To disclose a company's environmental, social, and governance (ESG) impact
Which global organization has developed standards for sustainability reporting?
a) Global Reporting Initiative (GRI)
b) World Trade Organization (WTO)
c) International Monetary Fund (IMF)
d) United Nations Security Council
Answer: a) Global Reporting Initiative (GRI)
ESG stands for:
a) Environmental, Social, and Governance
b) Economic, Strategic, and Growth
c) Employee, Stakeholder, and Growth
d) Ethical, Social, and Global
Answer: a) Environmental, Social, and Governance
Which of the following is a mandatory sustainability reporting framework in the European Union?
a) Corporate Sustainability Reporting Directive (CSRD)
b) United Nations Global Compact
c) International Financial Reporting Standards (IFRS)
d) Basel III Framework
Answer: a) Corporate Sustainability Reporting Directive (CSRD)
What is the purpose of carbon footprint reporting in businesses?
a) To measure and reduce greenhouse gas emissions
b) To increase carbon emissions
c) To focus only on financial metrics
d) To discourage climate action
Answer: a) To measure and reduce greenhouse gas emissions
What is sustainable finance?
a) Financial services that consider environmental and social factors
b) Investment strategies focused only on profit maximization
c) Government subsidies without accountability
d) Ignoring sustainability in business investments
Answer: a) Financial services that consider environmental and social factors
What is green investment?
a) Investments in environmentally sustainable projects
b) Investing only in fossil fuels
c) Reducing funding for renewable energy
d) Increasing carbon emissions through financial policies
Answer: a) Investments in environmentally sustainable projects
Which of the following is an example of green finance?
a) Issuing green bonds for renewable energy projects
b) Financing coal and oil extraction projects
c) Reducing funds for clean energy businesses
d) Ignoring environmental factors in financial decisions
Answer: a) Issuing green bonds for renewable energy projects
What is the role of impact investing in sustainability?
a) Generating financial returns while creating positive social or environmental impact
b) Only maximizing short-term profits
c) Ignoring social impact in business
d) Promoting unsustainable business practices
Answer: a) Generating financial returns while creating positive social or environmental impact
Sustainable investment funds are designed to:
a) Support companies with strong ESG performance
b) Invest in high-carbon industries
c) Avoid corporate transparency
d) Ignore environmental and social issues
Answer: a) Support companies with strong ESG performance
What is a major emerging trend in sustainable business?
a) Carbon neutrality goals
b) Increasing waste production
c) Reducing investment in renewable energy
d) Increasing fossil fuel dependence
Answer: a) Carbon neutrality goals
Which renewable energy source is gaining the most investment globally?
a) Solar energy
b) Coal energy
c) Nuclear energy
d) Diesel energy
Answer: a) Solar energy
Which of the following technologies supports sustainable business innovation?
a) AI-driven energy efficiency solutions
b) Increased use of single-use plastics
c) Expanding landfill sites
d) Reducing the use of clean technologies
Answer: a) AI-driven energy efficiency solutions
A company with net-zero emissions aims to:
a) Balance carbon emissions with carbon removal
b) Increase environmental pollution
c) Rely solely on non-renewable resources
d) Reduce transparency in ESG reporting
Answer: a) Balance carbon emissions with carbon removal
Sustainable businesses of the future will most likely:
a) Integrate environmental and social governance (ESG) into core strategy
b) Ignore sustainability concerns
c) Increase environmental harm for higher profits
d) Avoid investing in clean energy solutions
Answer: a) Integrate environmental and social governance (ESG) into core strategy
Which of the following best describes Corporate Social Responsibility (CSR)?
a) A company’s efforts to give back to society without integrating it into business strategy
b) A profit-only business model
c) A short-term business approach
d) A government-imposed tax on businesses
Answer: a) A company’s efforts to give back to society without integrating it into business strategy
Which of the following is NOT a key principle of Creating Shared Value (CSV)?
a) Addressing social issues through business solutions
b) Maximizing profits without considering social impact
c) Expanding economic opportunities for stakeholders
d) Creating sustainable and innovative business practices
Answer: b) Maximizing profits without considering social impact
CSR often involves activities such as:
a) Charity and donations
b) Increasing product prices
c) Reducing employee salaries
d) Eliminating customer service departments
Answer: a) Charity and donations
Which of the following is a limitation of CSR compared to CSV?
a) CSR is often treated as an optional side activity rather than a business strategy
b) CSR always leads to financial losses
c) CSR is always more profitable than CSV
d) CSR does not require companies to report their activities
Answer: a) CSR is often treated as an optional side activity rather than a business strategy
CSV differs from CSR because:
a) CSV integrates social impact into the business model
b) CSV focuses only on short-term donations
c) CSV ignores social and environmental concerns
d) CSV operates in a vacuum without considering stakeholders
Answer: a) CSV integrates social impact into the business model
What is the purpose of sustainability metrics?
a) To measure a company’s environmental, social, and governance (ESG) performance
b) To determine how much profit a company makes
c) To assess the total number of products sold
d) To track only financial growth
Answer: a) To measure a company’s environmental, social, and governance (ESG) performance
Which of the following is a commonly used sustainability reporting framework?
a) Global Reporting Initiative (GRI)
b) Consumer Price Index (CPI)
c) International Monetary Fund Reports
d) Business Process Reengineering (BPR)
Answer: a) Global Reporting Initiative (GRI)
Which key metric is used to measure carbon emissions in sustainability reports?
a) Carbon Footprint (CO₂ emissions)
b) Employee Performance Index
c) Gross Domestic Product (GDP)
d) Annual Revenue Growth
Answer: a) Carbon Footprint (CO₂ emissions)
What is the Triple Bottom Line (TBL) approach in sustainability measurement?
a) People, Planet, and Profit
b) Employees, Shareholders, and Competitors
c) Economic Growth, Supply Chain, and Customer Satisfaction
d) Investors, Business Growth, and Market Share
Answer: a) People, Planet, and Profit
Sustainability Key Performance Indicators (KPIs) help organizations to:
a) Track progress in environmental and social impact
b) Focus only on immediate profits
c) Ignore sustainability efforts
d) Increase production waste
Answer: a) Track progress in environmental and social impact
Sustainable supply chain management focuses on:
a) Reducing environmental and social impact throughout the supply chain
b) Increasing transportation costs
c) Avoiding partnerships with ethical suppliers
d) Ignoring sustainable procurement strategies
Answer: a) Reducing environmental and social impact throughout the supply chain
Which of the following is a key practice in ethical sourcing?
a) Fair trade partnerships
b) Using exploitative labor practices
c) Increasing deforestation for raw materials
d) Disregarding human rights concerns
Answer: a) Fair trade partnerships
A company ensuring its suppliers follow sustainability and ethical labor standards is practicing:
a) Responsible sourcing
b) Profit maximization only
c) Cost-cutting measures
d) Market manipulation
Answer: a) Responsible sourcing
Which of the following is a sustainable packaging practice?
a) Using biodegradable or recyclable materials
b) Increasing plastic waste
c) Ignoring packaging waste reduction
d) Overusing single-use materials
Answer: a) Using biodegradable or recyclable materials
One key challenge in maintaining a sustainable supply chain is:
a) High costs of sustainable raw materials
b) Increasing carbon footprint deliberately
c) Ignoring supplier partnerships
d) Promoting unethical labor practices
Answer: a) High costs of sustainable raw materials
Which international agreement focuses on climate change and sustainability?
a) The Paris Agreement
b) The NATO Treaty
c) The G7 Trade Agreement
d) The International Space Treaty
Answer: a) The Paris Agreement
Which of the following is a primary goal of the Paris Agreement?
a) Limit global temperature rise to below 2°C
b) Increase industrial pollution
c) Promote the use of fossil fuels
d) Ignore carbon emissions reduction
Answer: a) Limit global temperature rise to below 2°C
What is a carbon tax?
a) A tax on businesses based on the amount of carbon dioxide they emit
b) A tax on electronic products
c) A fee imposed for selling organic food
d) A tax levied on financial institutions
Answer: a) A tax on businesses based on the amount of carbon dioxide they emit
Which organization promotes sustainable development through environmental policies?
a) United Nations Environment Programme (UNEP)
b) World Wrestling Entertainment (WWE)
c) International Monetary Fund (IMF)
d) Federal Aviation Administration (FAA)
Answer: a) United Nations Environment Programme (UNEP)
Which of the following is a major challenge in enforcing sustainability regulations?
a) Lack of government incentives for businesses
b) High compliance levels across all companies
c) No financial impact on organizations
d) Full cooperation from industries
Answer: a) Lack of government incentives for businesses
