Legal and Ethical Environment of Business Review Questions
Course Introduction
This course examines the legal and ethical frameworks influencing business decisions and operations. Students explore fundamental concepts of business law, including contracts, torts, agency, and regulatory compliance, alongside ethical theories and issues facing modern enterprises. Emphasis is placed on recognizing and addressing legal risks, understanding judicial and regulatory processes, and applying ethical reasoning to real-world business scenarios. Through case studies and practical examples, students develop the skills to navigate the complex interplay between law, ethics, and business strategy in a global context.
Recommended Textbook
Business and Professional Ethics for Directors Executives and Accountants 8th Edition by Leonard
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8 Chapters
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/study-set/857
Page 2
Chapter 1: Ethics Expectations
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17039
Sample Questions
Q1) The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as the
A) credibility gap.
B) expectations gap.
C) audit gap.
D) stewardship gap.
E) None of these are correct.
Answer: B
Q2) Which organization is developing an international code of conduct for professional accountant?
A) International Accounting Standards Board
B) European Federation of Accountants
C) Financial Accounting Standards Board
D) Public Accounting Oversight Board
E) International Federation of Accountants
Answer: E
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Chapter 2: Ethics & Governance Scandals
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17040
Sample Questions
Q1) Which of the following is NOT covered under the Sarbanes-Oxley Act of 2002 (SOX)?
A) the responsibilities of shareholders
B) the responsibilities of the board of directors
C) the responsibilities of management
D) the responsibilities of auditors
E) conflicts of interest
Answer: A
Q2) The U.S. Internal Revenue Service (IRS) implemented Circular 230 to remedy problems found with regard to the marketing of tax shelters thought to
A) have no other purpose except to reduce taxes.
B) have lower than 50% chance of success if challenged by the IRS.
C) not be in accordance with client's needs.
D) create fictitious losses.
E) All of these are correct.
Answer: E
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4
Chapter 3: Philosophers Contributions
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17041
Sample Questions
Q1) Which theory argues that equals should be treated equally in relationship to their relevant equalities and differences?
A) deontology
B) distributive justice
C) utilitarianism
D) moral imagination
E) virtue ethics
Answer: B
Q2) A difficulty in applying this approach is identifying all possible stakeholders impacted by a decision:
A) deontology
B) distributive justice
C) utilitarianism
D) procedural justice/consequentialism
E) virtue ethics
Answer: C
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Page 5
Chapter 4: Practical Ethical Decision Making
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17042
Sample Questions
Q1) Which of these are character traits that dispose a person to act ethically and thereby make that person a morally good human being?
A) norms
B) moral judgements
C) virtues
D) values
E) ethical judgements
Q2) The AACSB Ethics Education taskforce has called for business students to be familiar with which of the following approaches to ethical decision making?
A) consequentialism, deontology, and virtue ethics
B) consequentialism, deontology, and moral imagination
C) distributive justice, deontology, and virtue ethics
D) distributive justice, deontology, and moral imagination
E) consequentialism, deontology, and distributive justice
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6
Chapter 5: Corporate Ethical Governance & Accountability
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17043
Sample Questions
Q1) Building trust within an organization can have favorable impact on employees' willingness to share information and ideas in a process of
A) ethical awareness.
B) ethical awakening.
C) ethical renewal.
D) ethical wave.
E) None of these are correct.
Q2) Corporations are now increasingly realizing that they are accountable
A) legally to shareholders.
B) legally to all stakeholders.
C) strategically to additional stakeholders.
D) legally to shareholders and all stakeholders.
E) legally to shareholders and strategically to additional stakeholders.
Q3) A Conference Board survey identified which of the following rationales for developing codes of ethics?
A) Make employees aware that adherence is critical to bottom-line success.
B) Provide a statement of do's and don'ts.
C) Discuss what is expected in stakeholder relationships.
D) Establish values and mission.
E) All of these are correct.
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Chapter 6: Professional Accounting in the Public Interest
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17044
Sample Questions
Q1) Using partners who do not report to audit partners for the provision of non-assurance services to an assurance client would be an example of
A) safeguards reducing the risk of conflict of interest created by the profession, legislation, or regulation.
B) safeguards reducing the risk of conflict of interest within a client.
C) safeguards reducing the risk of conflict of interest within a professional accounting firm.
D) safeguards reducing the risk of conflict of interest created by the profession, legislation, or regulation, and safeguards reducing the risk of conflict of interest within a professional accounting firm.
E) All of these are correct.
Q2) If a professional accountant is billing an audit client for more hours than those actually worked, he will be violating which of the following fundamental principles?
A) objectivity
B) professional due care
C) integrity
D) confidentiality
E) All of these are correct.
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8
Chapter 7: Managing Ethics Risks & Opportunities
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17045
Sample Questions
Q1) Which of the following three performance categories are recommended for disclosure by the Global Reporting Initiative?
A) economic, environmental and organizational
B) environmental, financial and social
C) economic, organizational and social
D) environmental, financial and organizational
E) economic, environmental and social
Q2) Which of the following is a performance component recommended by the Global Reporting Initiative relates to customer health and safety, marketing communications and customer privacy?
A) labour practices
B) human rights
C) product responsibility
D) society
E) customer rights
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Chapter 8: Subprime Lending Fiasco Ethics Issues
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17046
Sample Questions
Q1) Early in 2008, mark-to-market accounting provisions caused the banks to A) revalue their portfolio downwards.
B) be in jeopardy of falling below the regulatory capital requirements.
C) restrict new loans.
D) revalue their portfolio downwards, and restrict new loans.
E) All of these are correct.
Q2) Goldman Sachs' GSAMP Trust was able to create AAA rated securities by
A) separating the mortgage portfolio into tranches and assigning the tranches to share risks of default equally.
B) not disclosing the risks clearly.
C) guaranteeing or protecting some tranches.
D) separating the mortgage portfolio into tranches and designating the A-1, A-2, and A-3 tranches last in order, after the M-1 to M-7 and B-1 to B-3 tranches, to suffer losses if a default occurred.
E) All of these are correct.
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