DSST® practice test

Free DSST Business Ethics and Society Practice Test (2026)

This is a set of 25 original practice questions that follow the official DSST Business Ethics and Society content outline and its topic weights, each with a short explanation. Answer all 25, then read the explanations to see which topics need more study.

  • 25 questions
  • 8 topics from the official outline
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The practice test

25 questions

Question 1 of 25Under the employment-at-will doctrine that applies to most private US jobs, an employer may generally fire a worker
Question 2 of 25Milton Friedman famously argued that the social responsibility of business is to
Question 3 of 25An advertisement calls a restaurant's coffee 'the best in the universe.' Under US advertising law, this kind of vague, unprovable boast is usually treated as
Question 4 of 25An engineer learns that her company will announce a large merger next week and buys the company's stock before the news is public. Her action is
Question 5 of 25A US company closes one of its plants and moves that production to a new factory it owns in Vietnam. This is best described as
Question 6 of 25A government agency gradually comes to serve the interests of the industry it was created to regulate. What is this called?
Question 7 of 25A company requires a high school diploma for a warehouse job. The rule is not related to job performance and screens out one racial group at a much higher rate. Under Title VII, this is an example of
Question 8 of 25A manager decides not to mislead a customer because she could not want a world in which everyone lied whenever it was convenient. Her reasoning follows
Question 9 of 25Which US law made the theft of trade secrets a federal crime, including theft that benefits a foreign government?
Question 10 of 25The 'triple bottom line' asks a company to measure and report its
Question 11 of 25The National Labor Relations Act of 1935 (the Wagner Act)
Question 12 of 25Fair trade certification is mainly meant to
Question 13 of 25Shareholders own a corporation but hire managers to run it. The risk that managers will serve their own interests, for example with lavish perks, instead of the owners' is known as the
Question 14 of 25A hospital clerk posts a patient's diagnosis on social media. Which US law most directly protects the privacy of this information?
Question 15 of 25The Sarbanes-Oxley Act of 2002, passed after the Enron and WorldCom scandals, requires
Question 16 of 25A factory's smoke harms the health of nearby residents, but the cost of that harm is not reflected in the price of the factory's products. Economists call this cost
Question 17 of 25An accountant reports her company's fraud to the Securities and Exchange Commission after her managers ignore her complaints. This is an example of
Question 18 of 25Which US law makes it a crime for US companies to bribe foreign government officials to win or keep business?
Question 19 of 25The 1987 Brundtland Commission defined sustainable development as development that
Question 20 of 25An employee signs a contract promising not to reveal the company's confidential information, even after leaving the job. This contract is a
Question 21 of 25An employee follows company rules mainly to avoid being punished by her supervisor. In Kohlberg's theory of moral development, this reasoning is at the
Question 22 of 25The main role of the World Trade Organization (WTO) is to
Question 23 of 25Which federal agency sets and enforces workplace health and safety standards for most US private employers?
Question 24 of 25A company runs ads calling a product 'eco-friendly' because of one small packaging change, while its overall environmental impact is unchanged. This misleading practice is known as
Question 25 of 25Under the rule of strict product liability, a manufacturer can be held responsible for injuries caused by a defective product

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