Question : Multiple Choice 16. A conception of right and wrong is: A. : 1800950

Multiple Choice

16. A conception of right and wrong is:

A. Impossible to know.

B. The definition of ethics.

C. Determined by power.

D. Based on stakeholder dialogue.

17. People’s ethical beliefs come from:

A. Legislative action and judicial decisions.

B. Reading the company’s profit and loss statements.

C. Their religious background, family, and education.

D. The organization’s code of ethics.

18. People everywhere depend on ethical systems to tell them whether their actions are:

A. Legal or illegal.

B. Right or wrong.

C. Financially attainable or not.

D. Logical and reasonable judgment.

19. Businesses are expected to be ethical in their relationships with:

A. Stockholders.

B. Customers.

C. Competitors.

D. All of the above.

20. Why should business be ethical?

A. Most people want to act in ways that are consistent with their own sense of right and wrong.

B. Ethical behavior protects business firms from abuse by unethical employees and competitors.

C. Society’s stakeholders expect it from businesses.

D. All of the above.

21. Business executives are finding that a trusting, ethical relationship with a business partner is:

A. Best left to not-for-profit companies.

B. Too costly to maintain.

C. Likely to cause legal problems.

D. Often essential in conducting business.

22. Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:

A. Increased.

B. Reduced.

C. Unaffected.

D. Decided by the company.

23. Under the Sarbanes-Oxley Act, corporations are required to:

A. Have executives vouch for the accuracy of a firm’s financial reports.

B. Have their audit committee comprised of only executives employed by the firm. 

C. Collect reimbursements from the U.S. government if financial restatements occur.

D. All of the above.

24. The Sarbanes-Oxley Act:

A. Forces firms with inaccurate financial reporting into Chapter 11 bankruptcy.

B. Does not hold auditing firms liable for their client’s inaccurate account reporting.

C. Requires executives to pay back bonuses based on earnings that are later proved fraudulent.

D. Allows an auditing firm from providing the same client with non-auditing services. 

25. In a 2010 study of 400 companies, what percentage of firms said the benefits of the Sarbanes-Oxley Act outweighed its costs?

A. 12%

B. 33%

C. 55%

D. 70%