BUS 6600 Week 4 Exam Study
Guide.
Enron and Worldcom's collapses - answerLed to new regulations and legislation to promote
the accuracy of financial reporting for publicly held companies
2002 Sarbanes-Oxley Act - answerincreased the consequences for destroying, altering or
fabricating financia...
Enron and Worldcom's collapses - answer✔✔Led to new regulations and legislation to promote
the accuracy of financial reporting for publicly held companies
2002 Sarbanes-Oxley Act - answer✔✔increased the consequences for destroying, altering or
fabricating financial records, and for trying to defraud shareholders
The danger in writing new laws to correct behavior is that: - answer✔✔people may begin to
think that any behavior that is within the law is also acceptable
Ethics - answer✔✔society's accepted standards of moral behavior; that is, behaviors accepted by
society as right rather than wrong
most common form of cheating in schools today - answer✔✔Plagiarizing material from the
internet.
unethical behavior in business, especially in real estate and banking industries -
answer✔✔severe financial crisis / lack of trust in the free market system
Financial and political leaders can restore trust in the free market system by - answer✔✔making
business people more accountable for their actions / passing laws to make accounting records
more transparent.
laws - answer✔✔make business people more accountable for their actions than knowing what is
ethical
which of the following represents ethical behavior beyond what is legally required -
answer✔✔offering clients the best product for their needs regardless of profitability / investing
in local companies in which the company does business.
An employee ordering personal goods from a website during working hours without permission
from his employer is - answer✔✔unethical
Societies set the standards for moral behavior, known as _ - answer✔✔ethics
The standards of moral behavior, what is right or wrong, are known as - answer✔✔ethics
an ethical dilemma presents a situation for the decision maker in which there are two -
answer✔✔equally unsatisfactory alternatives
If the free-market system is to prevail, it must retain the _________ of its participants despite the
unethical behavior of a few - answer✔✔trust
compliance-based ethics codes - answer✔✔emphasize preventing unlawful behavior by
increasing control and penalizing wrongdoers
integrity-based ethics codes - answer✔✔Define the organization's guiding values, create an
environment that supports ethically sound behavior and stress a shared accountability.
when you are faced with an ethical dilemma, what should you ask yourself? - answer✔✔is the
proposed action legal, balanced, how will it make me feel about myself.
facing a decision to either act unethically or be fired for not following that direction -
answer✔✔ethical dilemma
the leadership and example set by strong ____ helps to instill ethical corporate values in its
employees - answer✔✔managers
which of the following can indirectly create an unethical business environment -
answer✔✔overly ambitious goals and incentive programs
to truly create an ethical culture managers must - answer✔✔show strong commitment to ethics
and compliance
which of the following are reasons a business should be managed ethically - answer✔✔to avoid
lawsuits/attract customers/maintain good reputation
an _____ ______ethics code creates an environment which supports ethically sound behavior by
stating an organizations guiding values, shared responsibility, and accountability -
answer✔✔integrity based
an employee who reported her boss to the SEC would be considered ______ protected by law -
answer✔✔whistleblower
it is important to have an ethics officer to ________ ethics code and provide a means of
communication - answer✔✔enforce
effective ethics officer shall - answer✔✔relate well to all employees at all levels/can be trusted
to maintain confidentiality
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