BUSFIN 3500 FINAL STUDY GUIDE
Law and Ethics - Answers - Are Interconnected: perceived unethical business behavior
often spurs public outcry for increased regulation of business.
Ethics Principles - Answers - 1) Maintain Fiduciary Standards
2)Avoid appearance of a Conflict of Interest
3) Respect Confidential Relations
4) Exercise Due Care and Due Diligence
5) Act in Good Faith and Deal Fairly with Others
Fiduciary - Answers - Someone who occupies a position of power, trust and confidence
regarding property of another
Fiduciary Rule - Answers - Requires fiduciary to act solely in the interest of that other
person's property and interests
Conflict of Interest - Answers - Exists when your personal interest or duty conflicts with
a professional interest or duty. Creates impression that person in conflicted situation
cannot be fair and impartial
Must:
1)Disqualify themselves from the opportunity presented
2)Disclose information and receive consent by communication situation before
continuing
Respect Confidential Relations - Answers - Certain relations and conditions give rise to
a legal duty to maintain confidentiality
Due Care - Answers - People and companies must be careful not to injure others.
Requires action at times to remove hazard or inaction to refrain from a dangerous
activity.
Act in Good Faith and Deal Fairly with Others - Answers - The obligation of good faith
and fair dealing is fundamental in business. Another components is disclosure of
companies history and any possible issues. Generally arises in the setting of
contractural dealings.
Ways Businesses Address Ethics - Answers - U.S. companies focus on developing a
corporate culture that encourages ethical behavior. They are motivated to develop
ethical practices to reduce possible fines from the government if an employee is
connected to unethical practices.
, Code of Ethics - Answers - Must be designed to deter wrongdoing and promote: honest
and ethical conduct, full, fair, accurate, timely and understandable disclosures,
compliance with government rules, prompt internal reporting of violation, and
accountability for adherence to the code
Jurisprudence - Answers - The study of legal Philosophy
Natural Law - Answers - Law that consists of higher principles existing independently of
human experience and exists as an ideal condition that is either interest in human
nature or derived form divine source
Positivist View - Answers - Law and any body of rules imposed by a sovereign or
sovereign body.
Historical View - Answers - Embodiment of society's customs. Law evolves with social
development.
Sociological View - Answers - Sum of what the law-books permit and what human
behavior provides.
Realist View - Answers - Product of various social influences on official discretion.
Critical View - Answers - Product of political and sociological judgments made by
judges.
Economic View - Answers - Instrument by which efficient economic outcomes are
achieved
Legistlative Branch - Answers - Organized body of persons having the authority to make
laws for a political unit.
Procedure: bill introduces to house or senate, referred to appropriate committee,
hearing and studies done by committee, bill sent to floor of congress it was introduced,
voted on, if it receives enough votes it is sent to other house of Congress, if same bill
passes then it goes to the presidents desk but if similar but different bill passes then
committee develops a compromise bill.
Executive Branch - Answers - President has the power to make treaties with support of
the senate. Also, has the authority over domestic affairs with executive orders. The
cabinet and Administrative agencies are also a part of the lawmaking in the Executive
Branch.
Judicial Branch - Answers - Courts make law when they decide a dispute. Called
Common law.
Law and Ethics - Answers - Are Interconnected: perceived unethical business behavior
often spurs public outcry for increased regulation of business.
Ethics Principles - Answers - 1) Maintain Fiduciary Standards
2)Avoid appearance of a Conflict of Interest
3) Respect Confidential Relations
4) Exercise Due Care and Due Diligence
5) Act in Good Faith and Deal Fairly with Others
Fiduciary - Answers - Someone who occupies a position of power, trust and confidence
regarding property of another
Fiduciary Rule - Answers - Requires fiduciary to act solely in the interest of that other
person's property and interests
Conflict of Interest - Answers - Exists when your personal interest or duty conflicts with
a professional interest or duty. Creates impression that person in conflicted situation
cannot be fair and impartial
Must:
1)Disqualify themselves from the opportunity presented
2)Disclose information and receive consent by communication situation before
continuing
Respect Confidential Relations - Answers - Certain relations and conditions give rise to
a legal duty to maintain confidentiality
Due Care - Answers - People and companies must be careful not to injure others.
Requires action at times to remove hazard or inaction to refrain from a dangerous
activity.
Act in Good Faith and Deal Fairly with Others - Answers - The obligation of good faith
and fair dealing is fundamental in business. Another components is disclosure of
companies history and any possible issues. Generally arises in the setting of
contractural dealings.
Ways Businesses Address Ethics - Answers - U.S. companies focus on developing a
corporate culture that encourages ethical behavior. They are motivated to develop
ethical practices to reduce possible fines from the government if an employee is
connected to unethical practices.
, Code of Ethics - Answers - Must be designed to deter wrongdoing and promote: honest
and ethical conduct, full, fair, accurate, timely and understandable disclosures,
compliance with government rules, prompt internal reporting of violation, and
accountability for adherence to the code
Jurisprudence - Answers - The study of legal Philosophy
Natural Law - Answers - Law that consists of higher principles existing independently of
human experience and exists as an ideal condition that is either interest in human
nature or derived form divine source
Positivist View - Answers - Law and any body of rules imposed by a sovereign or
sovereign body.
Historical View - Answers - Embodiment of society's customs. Law evolves with social
development.
Sociological View - Answers - Sum of what the law-books permit and what human
behavior provides.
Realist View - Answers - Product of various social influences on official discretion.
Critical View - Answers - Product of political and sociological judgments made by
judges.
Economic View - Answers - Instrument by which efficient economic outcomes are
achieved
Legistlative Branch - Answers - Organized body of persons having the authority to make
laws for a political unit.
Procedure: bill introduces to house or senate, referred to appropriate committee,
hearing and studies done by committee, bill sent to floor of congress it was introduced,
voted on, if it receives enough votes it is sent to other house of Congress, if same bill
passes then it goes to the presidents desk but if similar but different bill passes then
committee develops a compromise bill.
Executive Branch - Answers - President has the power to make treaties with support of
the senate. Also, has the authority over domestic affairs with executive orders. The
cabinet and Administrative agencies are also a part of the lawmaking in the Executive
Branch.
Judicial Branch - Answers - Courts make law when they decide a dispute. Called
Common law.
