Ethical Decision Making: Corporate Governance, Accounting, And Finance

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Questions Bank

Ethics and Business
Ethical Decision Making: Personal and Professional Contexts
Philosophical Ethics and Business
The Corporate Culture-Impact and Implications
Corporate Social Responsibility
Ethical Decision Making: Employer Responsibilities and Employee Rights
Ethical Decision Making: Technology and Privacy in the Workplace
Ethics and Marketing
Business and Environmental Sustainability
Ethical Decision Making: Corporate Governance, Accounting, and Finance

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Question 1

Free

True/False

Financial analysts rely on gatekeepers but are not gatekeepers themselves.

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True

False

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Question 2

Free

True/False

The most basic ethical issue facing professional gatekeepers and intermediaries in business contexts involves conflicts of interest.

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True

False

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Question 3

Free

True/False

A large boost in share price decreases a firm's equity leverage for external expansion.

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True

False

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Question 4

Free

True/False

The Sarbanes-Oxley Act is intended to provide protection where oversight did not previously exist.

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True

False

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Question 5

Free

True/False

While the Sarbanes-Oxley Act is an internal mechanism to ensure ethical corporate governance, the Committee of Sponsoring Organizations (COSO) is an external mechanism.

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True

False

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Question 6

True/False

Risk assessment provides assessment capabilities to uncover vulnerabilities of a firm.

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True

False

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Question 7

True/False

Risk assessment and ongoing monitoring are elements that comprise the control structure of the Sarbanes-Oxley Act.

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False

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Question 8

True/False

COSO is one of the first efforts to address corporate culture in a quasi-regulatory framework in recognition of its significant impact on the satisfaction of organizational objectives.

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True

False

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Question 9

True/False

The COSO controls and the Sarbanes-Oxley requirements must be supported by a culture of accountability.

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True

False

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Question 10

True/False

Board members are permitted to act in a way that is inconsistent with the central goals of the organization.

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True

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Question 11

True/False

The board can prohibit actions to protect the long-term sustainability of a firm.

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True

False

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Question 12

True/False

Since audits are paid for by audited clients, there is an inherent conflict found in that financial arrangement.

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True

False

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Question 13

True/False

In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.

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True

False

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Question 14

True/False

Laying-off of employees is one of the slowest ways to increase stock price.

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True

False

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Question 15

True/False

Insider trading is considered patently fair and ethical because it encourages employees to work hard to get access to company information.

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True

False

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Question 16

Multiple Choice

Which of the following is true of gatekeepers?

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They are not bound to ethical duties.

Investors and boards are examples of gatekeepers.

They serve as intermediaries between market participants.

They are not responsible for ensuring conformance to fairness in the marketplace.

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Question 17

Multiple Choice

Which of the following rely on gatekeepers for fair and effective functioning of economic markets?

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Bankers

Auditors

Accountants

Financial analysts

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Question 18

Multiple Choice

The function of auditors as gatekeepers is to:

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verify a company's financial statements so that investors' decisions are free from fraud and deception.

evaluate a company's financial prospects or creditworthiness, so that banks and investors can make informed decisions.

ensure that decisions and transactions conform to the law.

function as intermediaries between a company's stockholders and its executives.

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Question 19

Multiple Choice

Identify the gatekeepers who evaluate a company's financial prospects or creditworthiness, so that banks and investors can make informed decisions.

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Investors

Attorneys

Auditors

Analysts

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Question 20

Multiple Choice

Identify the gatekeepers who ensure that decisions and transactions conform to the law.

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Accountants

Attorneys

Auditors

Analysts

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