Chapter 1Multiple Choice Questions
\n___________________________________________________<\/p>\n
Examining the interests of stakeholders is probably required
\nfor:<\/p>\n
A value that is almost universally respected by stakeholder
\ngroups is:<\/p>\n
Companies attempt to manage the risk of something happening that
\nwill have a negative or positive impact on the company\u00e2\u0080\u0099s objectives, such as:<\/p>\n
Credit risksLitigation riskReputation riskEthics risksAll of the above<\/p>\n
Most large corporations do not consider these risks in a broad
\nand comprehensive way:<\/p>\n
Operational risksReputational risksCredit risksMarket risksEthics risks<\/p>\n
The following are examples of ethics risks faced by employees:<\/p>\n
Honesty and integrityFairness and compassionIntegrity and responsibilityFairness and integrityResponsibility and honesty<\/p>\n
Not reporting environmental issues is an example of:<\/p>\n
Lack of transparencyLack of integrityLack of accuracyAll of the aboveNone of the above<\/p>\n
Incomplete disclosure of the company\u00e2\u0080\u0099s revenue recognition
\npolicy is an example of:<\/p>\n
Lack of transparencyLack of integrityLack of accuracyAll of the aboveNone of the above<\/p>\n
This philosophical approach requires that an ethical decision
\ndepends upon the duty, rights, and justice involved:<\/p>\n
ConsequentialismVirtue ethicsDuty ethicsRighteousnessDeontology<\/p>\n
The Moral Standards Approach focuses on the following dimensions
\nof the impact of a proposed action:<\/p>\n
Net benefit to society, fair to all stakeholders, whether it is
\nrightNet benefit to society and
\nwhether it is legalNet benefit to society, fair to all stakeholders, whether it is
\nlegalFair to most stakeholders and whether it is rightNet benefit to society, fair to most stakeholders, whether it is
\nright<\/p>\n
Effective crisis management could represent:<\/p>\n
An opportunity to avoid costsAn opportunity to change employee\u00e2\u0080\u0099s perspectives on riskAn opportunity to enhance the company\u00e2\u0080\u0099s reputationAll of the aboveNone of the above<\/p>\n
Chapter 2 Multiple Choice Questions
\n_______________________<\/p>\n
In order to ensure an investment-grade credit rating, Enron
\nbegan to emphasize the following three actions:Reducing accruals, increasing cash flow, and lowering debtSmoothing accruals, increasing cash flow, and lowering debtIncreasing cash flow, lowering debt, and smoothing earningsIncreasing cash flow, lowering earnings and decreasing option
\nexpenseIncreasing cash flow, lowering debt, and decreasing option expense<\/p>\n
At the time of Enron\u00e2\u0080\u0099s collapse, the prevailing treatment for
\nemployee stock option expense was:<\/p>\n
Record stock options only when and if exercised, at exercise
\npriceRecord all stock options when issued, at exercise priceRecord all stock options at market priceRecord stock options only when exercised at market priceRecord not exercised options at market price<\/p>\n
Which of the following was not a conflict of interest
\nthat Arthur Andersen\u00e2\u0080\u0099s personnel encountered?Auditing their own work as SPE consultantsLosing a very large clientA partner reviewed another partner\u00e2\u0080\u0099s workInternal debates about Enron\u00e2\u0080\u0099s questionable accounting
\ntreatments were not discussed with the audit committeeAudit staff leaving the firm to work for Enron<\/p>\n
Which of the following was not among Arthur Andersen\u00e2\u0080\u0099s
\nshortcomings in conducting Enron\u00e2\u0080\u0099s audit?Lack of competenceFailure of quality control standardsMisunderstanding of auditor\u00e2\u0080\u0099s fiduciary roleInconclusive testing of controlInsufficient information provided by Enron\u00e2\u0080\u0099s staff<\/p>\n
In general terms, WorldCom overstated its reported net income
\nby:<\/p>\n
Generating false expensesBooking false revenueCapitalizing line costsAmortizing line costs quicker than allowed under GAAPRecognizing future period\u00e2\u0080\u0099s revenue<\/p>\n
Chapter 3 Multiple Choice Questions
\n_____________________________<\/p>\n
This philosopher argued that self-interest motivates people to
\nform peaceful civil societies:<\/p>\n
Adam SmithJohn LockeThomas HobbesJeremy BenthamJohn Rawls<\/p>\n
Two weaknesses of the following approach are (1) it is difficult
\nto determine who demonstrates integrity in the workplace, and (2) it is difficult to choose between
\ncompassion and not betraying somebody\u00e2\u0080\u0099s trust:DeontologyDistributive JusticeUtilitarianismMoral ImaginationVirtue Ethics<\/p>\n
This approach presupposes that happiness, utility, pleasure,
\npain and anguish can be quantified:DeontologyDistributive JusticeUtilitarianismMoral ImaginationVirtue Ethics<\/p>\n
This philosopher argued that social and economic inequalities
\nare just if these inequalities are to everyone\u00e2\u0080\u0099s benefit:<\/p>\n
Adam SmithJohn LockeThomas HobbesJeremy BenthamJohn Rawls<\/p>\n
According to distributive justice theory, there are three main
\ncriteria for determining the just distribution:<\/p>\n
Need, fairness, and meritNeed, arithmetic equality, and meritOpportunity, fairness, and meritOpportunity, fairness, and arithmetic equalityNeed, arithmetic equality, and equivalence<\/p>\n
Chapter 4 Multiple Choice Questions
\n______________________________<\/p>\n
These costs can be measured indirectly by using costs incurred
\nin similar circumstances or mirror image alternatives:SurrogatesExternalitiesFuture impactsCollateral damagesEthical costs<\/p>\n
This approach incorporates
\nthe expected future impacts of a decision into the analysis:<\/p>\n
Virtue ethicsConsequentialismCost-benefit analysisRisk-benefit analysisAll of the above<\/p>\n
(I do not understand the
\ndifference between Q8 and Q9; when are future impacts not expected in an
\nanalysis? I think that Q8 should be deleted; I\u00e2\u0080\u0099ve added a replacement question
\nat the end.)<\/p>\n
These values are the combinations of a value and the probability
\nof its occurrence:<\/p>\n
Probable valuesCommon valuesPresent valuesExpected valuesRisk-adjusted values<\/p>\n
Which of the following is not one of the 5 questions in
\nGraham Tucker\u00e2\u0080\u0099s original approach to ethical decision making?<\/p>\n
Is it profitableIs it right?Is it fair?Is it legal?Does it demonstrate the virtues expected?<\/p>\n
The following three standards make up the moral standards
\napproach:<\/p>\n
Utilitarian, Individual rights, and JusticeUtilitarian, Individual rights, and FairnessLegal, Individual rights, and JusticeUtilitarian, Moral rights, and JusticeLegal, Moral rights, and Justice<\/p>\n
Pastin\u00e2\u0080\u0099s approach adds the following concepts to stakeholder
\nimpact analysis:<\/p>\n
Rule ethicsGround rule ethicsEnd-point ethicsSocial contract ethicsAll of the above<\/p>\n
The following approach does not specifically incorporate
\na thorough review of the motivation for the decisions involved, or the virtues
\nor character traits expected:<\/p>\n
5-question approachMoral standards approachPastin\u00e2\u0080\u0099s approachAll of the above(a) and (b) only<\/p>\n
Lack of awareness of the following problem results in executives
\nnot attributing enough value to the use of an environmental resource:<\/p>\n
Commons problemEthics problemValue problemRisk-assessment problemMoral problem<\/p>\n
If a decision is expected to be unfair to a particular
\nstakeholder group, the decision may be improved by:<\/p>\n
Using stakeholder analysisUsing a decision making approachIncreasing the compensation to that stakeholder groupIncreasing the compensation to all stakeholder groupsAll of the above<\/p>\n
Which of the following is not an example of a common
\nethical decision-making pitfall?<\/p>\n
Conforming to an unethical corporate cultureFocusing only on legalitiesConflicts of interestsFailure to identify all stakeholder groupsNone of the above<\/p>\n
Failure to identify all relevant stakeholder groups for a proper
\nstakeholder impact analysis may be the result of:BiasConforming to an unethical corporate cultureConflicts of interestsFailure to consider the motivation for the decisionAll of the above<\/p>\n
Completing the following steps in this order provides a sound
\nbasis for challenging a proposed decision:<\/p>\n
Identify facts and stakeholders, rank stakeholders and their
\ninterests, and assess the impact of the proposed actionIdentify a proper ethical decision framework, rank stakeholders
\nand their interests, and assess the impact of the proposed actionRank stakeholders and their interests, identify facts and stakeholders,
\nand assess the impact of the proposed actionIdentify a proper ethical decision framework, identify facts and
\nstakeholders, and assess the impact of the proposed actionRank stakeholders and their interests, identify a proper ethical
\ndecision framework, and assess the impact of the proposed action<\/p>\n
Frequently, decision makers have been subject to unreasonable
\nexpectations and unrealistic deadlines, this is an example of:<\/p>\n
Conforming to an unethical corporate cultureFocusing only on legalitiesConflicts of interestsFailure to identify all stakeholder groupsFailure to rank stakeholder interests<\/p>\n
Chapter 5 Multiple Choice Questions
\n_________________________________<\/p>\n
Corporations are now increasingly realizing that they are
\naccountable:<\/p>\n
Legally to shareholdersLegally to all stakeholdersStrategically to additional stakeholders(a) and (b)(a) and (c)<\/p>\n
The company\u00e2\u0080\u0099s internal auditors and the Ethics Officer should
\nreport:Day-to-day to the CEODay-to-day to the Audit Committee of the Board of DirectorsRegularly to the Audit Committee of the Board of Directors
\nwithout management being present(a) and (c)(a) and (b)Experience has revealed that, to be effective, a code must be
\nreinforced by:Tone at the topEthics officer and internal auditorsA comprehensive ethical culturePrinciples, rules and examplesAll of the aboveWhich of the following is not an ethics risk management
\nprinciple?Normal definitions of risk are too narrow for stakeholder
\naccountabilityAssign responsibility, develop follow-up processes and board
\nreviewDiscovery and remediation are essentialThe code of ethics must be reviewed by independent partiesAn ethics risk exists when expectations of stakeholders may not
\nbe metA conflict of interest exists when a given decision maker (D)
\nand another person (P) are in the following situation:D has to exercise judgement in P\u00e2\u0080\u0099s behalfP has to exercise judgement in D\u00e2\u0080\u0099s behalfD has a special interest that interferes with proper judgement(a) and (b)(a) and (c)A potential conflict of interest exists when a given decision
\nmaker (D) and another person (P) are in the following situation:P has a special interest that interferes with proper judgementD may have to exercise judgement in P\u00e2\u0080\u0099s behalfD has a special interest that interferes with proper judgement(a) and (b)(b) and (c)This is the preferred approach to deal with conflicts of
\ninterestsManagementDisclosureRemediationAvoidanceAwarenessA fundamental problem examined by agency theory is how it is
\npossible to align:Shareholders\u00e2\u0080\u0099 and stakeholders\u00e2\u0080\u0099 goalsManager\u00e2\u0080\u0099s and stakeholders\u00e2\u0080\u0099 goalsShareholders\u00e2\u0080\u0099 and managers\u00e2\u0080\u0099 goalsPrincipal\u00e2\u0080\u0099s and shareholders\u00e2\u0080\u0099 goalsAgent\u00e2\u0080\u0099s and stakeholders\u00e2\u0080\u0099 goalsThe 20\/60\/20 rule states that the total percent of employees who
\ncould commit a fraudulent act is:20%60%80%100%None of the aboveWhich of the following is not a characteristic identified by
\nforensic experts in prospective fraud situations?High intelligenceGreedNeed for whatever is takenOpportunity to take advantageLow probability of being caughtThe primary focus of a compliance-based ethics program is:Preventing, detecting and punishing violations of the lawDefine organizational values and encourage employee commitmentImprove image and relationship with stakeholdersProtect management from blameAll of the aboveThe primary focus of an integrity-based ethics program is:Preventing, detecting and punishing violations of the lawDefine organizational values and encourage employee commitmentImprove image and relationship with stakeholdersProtect management from blameAll of the aboveThe most important factor in encouraging employee observance to
\nan ethics program is that employees perceive that it is:<\/p>\n
Compliance-based
\nValue-based
\nAchievement oriented
\nStakeholder-based
\nExternally oriented<\/p>\n
Building trust within an organization can have favourable impact
\non employee\u00e2\u0080\u0099s willingness to share information and ideas in a process of:Ethical awarenessEthical awakeningEthical renewalEthical wave None of the aboveA Conference Board survey identified the following rationale for
\ndeveloping codes of ethics:Make employees aware that adherence is critical to bottom-line
\nsuccessProvide a statement of do\u00e2\u0080\u0099s and don\u00e2\u0080\u0099tsDiscuss what is expected in stakeholder relationshipsEstablish values and missionAll of the aboveThis code deals with ethics principles plus additional examples:CredoCode of ethicsCode of conductCode of practiceAll of the aboveWhich of the following is not a mechanism for monitoring
\na code of ethics?Ethics audit or internal audit proceduresReviews by legal departmentAwards and bonusesAnnual sign-off by employeesEmployee surveysWhich of the following is not an example of emerging
\npublic accountability standards or initiatives?SOX-404GRIAA-1000FTSE4GoodAll of the aboveSOX imposed the following new penalties for executives:FinesSuspensionCriminal prosecution for executivesReturn of ill-gotten gainsAll of the above<\/p>\n","protected":false},"excerpt":{"rendered":"
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