Managing For Sustainability Set 5 MCQs

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