ETHICS AND PROFESSIONAL CONDUCT
UPDATED EXAM 2 FINAL EXAM 2026
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ According to ethics and compliance officers, a respected and
trusted insider who knows the company's culture and people is a
preferable choice for a firm's ethics or compliance officer.
Answer: true.
◉ Centralized ethics offices are nearly always the best choice as
these provide for greater consistency and commitment to the
organization's key values.
Answer: false.
◉ Seldom should ethics information be included in a company's
external website.
Answer: false.
◉ Measured over a three-year period, companies with high trust
levels have three times the rate of shareholder returns as compared
to companies with low trust levels.
Answer: true.
,◉ An organization can be convicted of a crime even if only one
employee breaks the law.
Answer: true.
◉ In extreme cases, the US Sentencing Commission allows "death
penalty" wherein the organization ceases to exist.
Answer: true.
◉ The ethics officer is typically a middle-level manager.
Answer: false.
◉ Research has shown that between ___________ of the information
that passes through the grapevine is accurate.
Answer: 70 to 90%.
◉ __________ understand and follow the rules and policies of the
organization. They also have the judgment to discern the difference
between right and wrong.
Answer: good soldiers.
◉ ___________ may have good ethical compasses, but they don't know
their corporation's policies. Without guidance, ethics may not even
be a consideration.
,Answer: loose cannons.
◉ ___________ have their own agenda and lack any company or
professional loyalty.
Answer: grenades.
◉ Mission statements should be written by outsiders who are
unbiased.
Answer: false.
◉ When designing a policy manual:
Answer: important policies should be communicated in short
brochures.
◉ When communicating a code of conduct:
Answer: focus on values that should guide decision making.
◉ Your friend, Sam, has been selected to create a new ethics training
program at work. What advice should you give Sam?
Answer: provide separate training depending on the needs of
different groups of employees.
, ◉ The __________ approach to formal corporate ethics initiatives is
proactive and inspirational.
Answer: values.
◉ The _________ approach to formal corporate ethics initiatives
focuses on meeting required behavior norms or obeying the letter of
the law.
Answer: compliance.
◉ Under the U. S. Sentencing Guidelines, the same crime can be
subject to a wide range of penalties. In determining the penalty, the
following will be considered:
Answer: all of the above.
◉ _____________ is a term frequently used to describe ethics initiatives
that begin at the top of the organization and work their way down,
level by level.
Answer: cascading.
◉ An effective approach to managing ethics has a compliance-only
focus.
Answer: false.
UPDATED EXAM 2 FINAL EXAM 2026
COMPLETE QUESTIONS ANSWERS PREMIUM
STUDY GUIDE
◉ According to ethics and compliance officers, a respected and
trusted insider who knows the company's culture and people is a
preferable choice for a firm's ethics or compliance officer.
Answer: true.
◉ Centralized ethics offices are nearly always the best choice as
these provide for greater consistency and commitment to the
organization's key values.
Answer: false.
◉ Seldom should ethics information be included in a company's
external website.
Answer: false.
◉ Measured over a three-year period, companies with high trust
levels have three times the rate of shareholder returns as compared
to companies with low trust levels.
Answer: true.
,◉ An organization can be convicted of a crime even if only one
employee breaks the law.
Answer: true.
◉ In extreme cases, the US Sentencing Commission allows "death
penalty" wherein the organization ceases to exist.
Answer: true.
◉ The ethics officer is typically a middle-level manager.
Answer: false.
◉ Research has shown that between ___________ of the information
that passes through the grapevine is accurate.
Answer: 70 to 90%.
◉ __________ understand and follow the rules and policies of the
organization. They also have the judgment to discern the difference
between right and wrong.
Answer: good soldiers.
◉ ___________ may have good ethical compasses, but they don't know
their corporation's policies. Without guidance, ethics may not even
be a consideration.
,Answer: loose cannons.
◉ ___________ have their own agenda and lack any company or
professional loyalty.
Answer: grenades.
◉ Mission statements should be written by outsiders who are
unbiased.
Answer: false.
◉ When designing a policy manual:
Answer: important policies should be communicated in short
brochures.
◉ When communicating a code of conduct:
Answer: focus on values that should guide decision making.
◉ Your friend, Sam, has been selected to create a new ethics training
program at work. What advice should you give Sam?
Answer: provide separate training depending on the needs of
different groups of employees.
, ◉ The __________ approach to formal corporate ethics initiatives is
proactive and inspirational.
Answer: values.
◉ The _________ approach to formal corporate ethics initiatives
focuses on meeting required behavior norms or obeying the letter of
the law.
Answer: compliance.
◉ Under the U. S. Sentencing Guidelines, the same crime can be
subject to a wide range of penalties. In determining the penalty, the
following will be considered:
Answer: all of the above.
◉ _____________ is a term frequently used to describe ethics initiatives
that begin at the top of the organization and work their way down,
level by level.
Answer: cascading.
◉ An effective approach to managing ethics has a compliance-only
focus.
Answer: false.
