Corporate Governance And Business Ethics Set 2
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This set of Corporate Governance and Business Ethics Multiple Choice Questions & Answers (MCQs) focuses on Corporate Governance And Business Ethics Set 2
Q1 | Triple Bottom Line reporting refers to:
- using a low, medium and high estimates for profitability forecasts.
- measuring the impact of the firm on stockholders, customers and employees.
- measuring the social, environmental, and financial performance of the firm.
- measuring the impact of local, state, and federal governments on the firm.
Q2 | Corporate governance can be defined as:
- the system used by firms to control the actions of their employees.
- the election process used to vote in a new Board of Director.
- the corporate compliance system used by the firm.
- the system used by firms to identify who the critical stakeholders are for the firm.
Q3 | The system that is used by firms to control and direct their operations and the operations oftheir employees is called:
- Corporate Compliance.
- Corporate Governance.
- Corporate Control.
- Corporate Directive.
Q4 | Which board of directors committee is responsible for the guidelines on how the board ofdirectors should operate.
- Operating
- Corporate governance
- Corporate compliance
- Guiding
Q5 | The Sarbanes-Oxley Act was a direct response to which ethics scandals?
- Tyco
- WorldCom
- Enron
- None of the above.
Q6 | What is the name of the process in which an employee informs another responsible employeein the company about potentially unethical behavior?
- Whistle-blowing
- Purging and releasing
- Identification
- Information transfer
Q7 | There are ___________ conditions that, if satisfied, change the moral status of whistleblowing.
- three
- four
- five
- six
Q8 | An example of a whistle blower whose actions were a form of internal government whistleblowing is:
- Sherron Watkins.
- Coleen Rowley.
- Cynthia Cooper.
- Lee Iacocca.
Q9 | One whistle blower the text mentions is Cynthia Cooper who was the vice president ofinternal audit at ____________.
- Enron
- WorldCom
- Tyco
- none of the above
Q10 | One classic example of whistle-blowing is the:
- Ford Pinto case.
- Lincoln case.
- Toyota case.
- none of the above.
Q11 | A whistle-blower:
- doesn’t have to be a past or present member of the organization.
- doesn’t have to report activity that is illegal, immoral, or harmful.
- is any employer who spreads gossip.
- far from being disloyal, may be acting in the best interest of the organization.
Q12 | The Sarbanes-Oxley Act:
- makes it easier to fire whistle blowers.
- reduces the law’s protection of employees who disclose securities fraud.
- makes it illegal for executives to retaliate against employees who report possible violations of federal law.
- provides penalties for blowing the whistle illegitimately or maliciously.
Q13 | Inside traders ordinarily defend their actions by claiming that they don’t injure:
- their boss.
- their family.
- the government.
- any one.
Q14 | Shareholders have the right to know all except:
- Information on the management of the corporation
- Trade secrets
- The companies financial position
- The companies general plans for the future.
Q15 | Which act provides sweeping new legal protection for employees who report possiblesecurities fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?
- Sarbanes-Oxley Act of 2002
- Foreign Corruption Act
- Economic Espionage Act
- U.S. vs. O’Hagan
Q16 | What is meant by the phrase CSR?
- Corporate Social Responsibility
- Company Social Responsibility
- Corporate Society Responsibility
- Company Society Responsibility
Q17 | What is meant by the phrase 'teleological ethics'?
- Is used to judge is an action is right, fair and honest.
- An action can only be judged by its consequences
- Developing the individual personal characteristics
- The key purpose of ethics is to increase freedom.
Q18 | What, according to Adam Smith, is the best way to promote collective interest?
- Through government making decisions about what is in the public interest.
- Through everyone working together to support each other.
- Through everyone working on their own self interest
- Through individuals forgoing their personal interest for the good of the collective.
Q19 | Why, according to stakeholder theory, is it in companies' best interests to pay attention to theirstakeholders?
- If firms only act in their own self-interest employees may feel exploited.
- If firms only act in their own self-interest government might put more regulation on them.
- If firms only act in their own self-interest customers might not like the image that the company portray.
- If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
Q20 | What is the enlightened self-interest model of CSR?
- That it is in an organization's own best interest to put itself first rather than its ethics.
- That it is in an organization's best interest to consider what a shareholder would want.
- That it is in an organization's own best interest to act in an ethical way.
- That it is in an organization's own best interest to follow the legislation and abide by the law.
Q21 | What is green washing?
- Transforming products to be more ethical.
- Making a product appear more ethical that it really is.
- Converting the company to green production methods.
- Convincing customers to buy ethically.
Q22 | What is triple bottom line?
- An accounting tool that looks at the impact on people, planet and profits.
- A management strategy which states all the attention should be on profits.
- An accounting tool that looks at cost, profit and loss.
- A management strategy which focuses on corporate social responsibility.
Q23 | A ________ _________ sets out the purpose and general direction for the organisation?
- Mission statement
- Purpose statement
- Vision
- Profit statement
Q24 | Which of the following would most effectively act as the primary objective of a businessorganisation?
- To make a profit
- To procure resources
- To communicate with shareholders
- To mediate between the organisation and the environment
Q25 | What is the purpose of a balanced scorecard?
- To measure contribution of people to business growth
- To combine a range of qualitative and quantitative indicators of performance
- To relate business performance to customer satisfaction
- All of the above