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Test Bank For Business and Professional Ethics for Directors Executives Accountants 8th Edition Brooks

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1. Ethical dilemmas arise when a. norms and values are in conflict. b. there is only one alternative course of action available. c. norms and values are not in conflict. d. there are several theories of ethical decision making. e. All of these are correct. ANSWER: a POINTS: ...

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,1. 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
POINTS: 1
REFERENCES: The Ethics Environment for Business: The Battle for Credibility, Reputation, & Competitive
Advantage
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
DATE CREATED: 4/11/2018 12:45 AM
DATE MODIFIED: 4/13/2018 9:16 AM

2. Which of the following is NOT a trend described in Chapter 1 as having an impact on the ethics of business?
a. directors’ legal liability
b. management’s stated intention to protect reputation
c. auditors’ legal liability
d. management’s assertions to shareholders on the adequacy of internal controls
e. management’s stated intention to manage risk
ANSWER: c
POINTS: 1
REFERENCES: Responses & Developments
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
DATE CREATED: 4/11/2018 12:49 AM
DATE MODIFIED: 4/11/2018 12:53 AM

3. Which corporate report discusses subjects that include environmental, health and safety, philanthropic and
other social impacts?
a. corporate annual report
b. corporate social responsibility report
c. corporate quarterly report
d. corporate stakeholder report
e. corporate ethics committee report
ANSWER: b
POINTS: 1
REFERENCES: The Ethics Environment for Business: The Battle for Credibility, Reputation, & Competitive
Advantage
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1

,KEYWORDS: Bloom’s: Remembering
DATE CREATED: 4/11/2018 12:51 AM
DATE MODIFIED: 4/11/2018 12:52 AM

4. Professional accountants, in their fiduciary role, owe their primary loyalty to
a. the accounting profession.
b. the client.
c. the general public.
d. government regulations.
e. All of these are correct.
ANSWER: c
POINTS: 1
REFERENCES: New Expectations for Business
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
DATE CREATED: 4/11/2018 12:56 AM
DATE MODIFIED: 4/11/2018 12:56 AM

5. Ethical corporate behavior is expected to lead to
a. higher profitability in the short-term.
b. higher profitability both in the short-term and long-term.
c. lower profitability in the long-term.
d. higher profitability in the long-term.
e. lower profitability both in the short-term and long-term.
ANSWER: d
POINTS: 1
REFERENCES: The Ethics Environment for Business: The Battle for Credibility, Reputation & Competitive
Advantage
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Comprehension
DATE CREATED: 4/11/2018 12:57 AM
DATE MODIFIED: 4/11/2018 12:58 AM

6. Examining the interests of stakeholders is probably required for
a. high short-term profits.
b. optimal medium and longer-term profits.
c. continuing support from stakeholder groups.
d. effective risk management.
e. All of these are correct.
ANSWER: a
POINTS: 1
REFERENCES: Responses & Developments

Copyright Cengage Learning. Powered by Cognero. Page 2

, QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Comprehension
DATE CREATED: 4/11/2018 1:13 AM
DATE MODIFIED: 4/11/2018 1:13 AM

7. A value that is almost universally respected by stakeholder groups is a
a. super norm.
b. alfa norm.
c. value norm.
d. hypernorm.
e. general norm.
ANSWER: d
POINTS: 1
REFERENCES: Responses & Developments
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Remembering
DATE CREATED: 4/11/2018 1:15 AM
DATE MODIFIED: 4/11/2018 1:16 AM

8. Since the mid-1990s, both management and auditors have become increasingly
a. profit management oriented.
b. ethics oriented.
c. value management oriented.
d. risk management oriented.
e. ethics oriented and risk management oriented.
ANSWER: e
POINTS: 1
REFERENCES: Responses & Development
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
KEYWORDS: Bloom’s: Comprehension
DATE CREATED: 4/11/2018 1:19 AM
DATE MODIFIED: 4/11/2018 1:20 AM

9. Which of the following are determinants of reputation?
a. trustworthiness and responsibility
b. credibility, responsibility and relevance
c. responsibility and impartiality
d. relevance and impartiality
e. relevance, credibility and responsibility
ANSWER: a
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 3

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