CFA Level 1 - Ethics, Professional Standards, and GIPS QUESTIONS WITH COMPLETE SOLUTIONS

Stakeholders correct answers Individuals or groups of individuals who could be affected either directly or indirectly by a decision (Have a stake in decision) Ethics correct answers A set of moral principles and rules of conduct that provide guidance for our behavior Moral/ethical principles correct answers Beliefs about what is good, acceptable, obligatory, and what is bad, unacceptable, or forbidden Do moral/ethical principles pertain to yourself or others? correct answers Both Code of ethics correct answers -Written principles -Groups codification of beliefs about obligatory and forbidden conduct Standards of conduct correct answers Benchmarks for minimally acceptable behavior- clarifies code of ethics Profession correct answers Specialized skills and knowledge who serve others and agree to behave in accordance w/ a code of ethics What do most professions emphasize? correct answers -Ethical approach -Importance of good service -Empathy with the client What separates professions from tradespeople? correct answers -Licensed status and technical standards -Serve society How do professions establish trust? correct answ