Managing For Sustainability Set 5
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This set of Managing for Sustainability Multiple Choice Questions & Answers (MCQs) focuses on Managing For Sustainability Set 5
Q1 | Codes of conduct and codes of ethics
- are formal statements that describe what an organization expects of its employees.
- become necessary only after a company has been in legal trouble.
- are designed for top executives and managers, not regular employees.
- rarely become an effective component of the ethics and compliance program.
Q2 | Which of the following is NOT one of the primary elements of a strong organizational compliance program?
- A written code of conduct
- An ethics officer
- Significant financial expenditures
- A formal ethics training program
Q3 | ______________ are standards of behaviour that groups expect of their members.
- Codes of conduct.
- Group values.
- Group norms.
- Organizational norms.
Q4 | In a ______________ organization, decision making is delegated as far down the chainof command as possible.
- Decentralized
- Creative
- Flexible
- Centralized
Q5 | ____________ refers to a strategic process involving stakeholder assessment to create long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment.
- Eco-strategy
- Green marketing
- Superfund reauthorization
- Recycle and reprocess management
Q6 | The hand-of-government refers to the
- ability of the government to interfere in business negotiations
- role of corporations to be profitable within the law
- effect of national politics on business decisions
- impact of changing government regulations
Q7 | An organisation's obligation to act to protect and improve society's welfare as well asits own interests is referred to as
- organisational social responsibility
- organisational social responsiveness
- corporate obligation
- business ethics
Q8 | The view that business exists at society's pleasure and businesses should meet public expectations of social responsibility is the
- iron law of responsibility argument
- enlightened self-interest argument
- capacity argument
- anti-freeloader argument
Q9 | Managerial ethics can be characterised by all of the following levels except
- immoral management
- amoral management
- demoral management
- moral management
Q10 | Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
- Openness
- Integrity
- Accountability
- acceptability
Q11 | External audit of the accounts of a limited company is required
- because it is demanded by the company’s bankers
- by the Companies Act 2006
- at the discretion of the shareholders
- to detect fraud
Q12 | Directors’ responsibilities are unlikely to include.
- a fiduciary duty
- a duty to keep proper accounting records
- a duty to propose high dividends for shareholders
- a duty of care
Q13 | A company may become insolvent if it
- has negative working capital
- cannot meet its budgeted level of profit
- makes a loss
- cannot pay creditors in full after realisation of its assets
Q14 | A director of a limited company may not be liable for wrongful trading if he or she
- took every step to minimise the potential loss to creditors
- increased the valuation of its inventories to cover any potential shortfall
- introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any shortfall
- brought in some expected sales from next year into the current year
Q15 | Fraudulent trading may be
- a civil offence committed by any employee
- a criminal offence committed only by directors of a limited company
- a civil and a criminal offence committed only by directors of a limited company
- a civil and a criminal offence committed by any employee
Q16 | Disqualification of directors may result from breaches under the
- Sale of Goods Act 1979
- Financial Services Act 1986
- Companies Act 2006 and Insolvency Act 1986
- Health and Safety at Work Act 1974
Q17 | Directors may not be disqualified for
- continuing to trade when the company is insolvent
- persistent breaches of company legislation
- paying inadequate attention to the company finances
- being convicted of drunken driving
Q18 | Which of the following actions will not help directors to protect themselves from noncompliance with their obligations and responsibilities?
- keeping themselves fully informed about company affairs
- ensuring that regular management accounts are prepared by the company
- seeking professional help
- including a disclaimer clause in their service contracts
Q19 | Co-ording to Cadbury (2002), corporate governance is an issue of power and:
- Rights
- Accountability
- Profit
- Appropriability
Q20 | The OECD argues that corporate governance problems arise because:
- Ownership and control is separated
- Managers always act in their own self interest
- Profit maximization is the main objective of organizations
- Stakeholders have differing levels of power
Q21 | The Institute of Chartered Accountants in England and Wales considers argue that one particular stakeholder group should have primacy over all other groups. Which stakeholder group are they referring to?
- Customers
- Managers
- Shareholders
- Society
Q22 | An organization that is owned by shareholders but managed by agents on their behalfis conventionally known as the modern:
- Conglomerate
- Corporation
- Company
- Firm
Q23 | The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:
- Fiduciary duty
- Stakeholders
- Shareholders
- Transferability
Q24 | What makes a corporation distinct from a partnership?
- If the members of a corporation die, the corporation remains in existence providing it has capital
- If the members of a corporation die, the corporation ceases to exist
- A corporation cannot own property
- A corporation cannot be held responsible for the illegal acts of its employees
Q25 | The term 'asymmetry of information' means information in a corporation is:
- Transferable to all stakeholders
- Not transferable to all stakeholders
- Not equally transparent to all stakeholders
- Equally transparent to all stakeholders