MGMT 4073 CHAPTER 6 QUESTIONS AND ANSWERS | MGT 4073 CH 6 STUDY
GUIDE & PRACTICE TEST 2026/2027
According to the US Federal Sentencing Guidelines, responsibility to oversee legal compliance standards
can be divided among legal counsel, internal auditors, or human resource professionals. - correct answer
✔✔True
The title "ethics officer" did not exist until the early 1990s. - correct answer ✔✔False
Depending on the organization's culture, the word "ethics" may carry a negative connotation and need
to be replaced with "business conduct." - correct answer ✔✔True
Ethics only needs to be communicated in orientation materials for new employees. - correct answer
✔✔False
An "ethics action line" is unnecessary because it promotes "tattling" on people an employee doesn't like.
- correct answer ✔✔False
An increase in the number of calls on the "ethics action line" is a sign that there are more reportable
problems in the company now. - correct answer ✔✔False
7. Pursuant to the U. S. Sentencing Guidelines, an organization can be convicted even if only one
employee is caught breaking the law. - correct answer ✔✔True
8. According to United States v. Booker, judges are no longer required to follow strictly the U. S.
Sentencing Guidelines. - correct answer ✔✔True
9. 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. - correct
answer ✔✔True
10. Centralized ethics offices are nearly always the best choice as these provide for greater consistency
and commitment to the organization's key values. - correct answer ✔✔False
11. Seldom should ethics information be included in a company's external website. - correct answer
✔✔False
12. 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. - correct answer ✔✔True
13. An organization can be convicted of a crime even if only one employee breaks the law. - correct
answer ✔✔True
14. In extreme cases, the US Sentencing Commission allows "death penalty" wherein the organization
ceases to exist. - correct answer ✔✔True
GUIDE & PRACTICE TEST 2026/2027
According to the US Federal Sentencing Guidelines, responsibility to oversee legal compliance standards
can be divided among legal counsel, internal auditors, or human resource professionals. - correct answer
✔✔True
The title "ethics officer" did not exist until the early 1990s. - correct answer ✔✔False
Depending on the organization's culture, the word "ethics" may carry a negative connotation and need
to be replaced with "business conduct." - correct answer ✔✔True
Ethics only needs to be communicated in orientation materials for new employees. - correct answer
✔✔False
An "ethics action line" is unnecessary because it promotes "tattling" on people an employee doesn't like.
- correct answer ✔✔False
An increase in the number of calls on the "ethics action line" is a sign that there are more reportable
problems in the company now. - correct answer ✔✔False
7. Pursuant to the U. S. Sentencing Guidelines, an organization can be convicted even if only one
employee is caught breaking the law. - correct answer ✔✔True
8. According to United States v. Booker, judges are no longer required to follow strictly the U. S.
Sentencing Guidelines. - correct answer ✔✔True
9. 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. - correct
answer ✔✔True
10. Centralized ethics offices are nearly always the best choice as these provide for greater consistency
and commitment to the organization's key values. - correct answer ✔✔False
11. Seldom should ethics information be included in a company's external website. - correct answer
✔✔False
12. 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. - correct answer ✔✔True
13. An organization can be convicted of a crime even if only one employee breaks the law. - correct
answer ✔✔True
14. In extreme cases, the US Sentencing Commission allows "death penalty" wherein the organization
ceases to exist. - correct answer ✔✔True
