SUSTAINABILITY MIDTERM EXAM
QUESTIONS WITH CORRECT ANSWERS
Criteria required in order for an enterprise to be considered sustainable - Answer- a)
Socially justified
b) Environmentally sound
c) Increases public wealth with proper mechanisms for its distribution
d) Ethically conducted
three words that begin with a "p" are commonly used in reference to the "triple bottom
line" - Answer- Performance(profit), people & planet
3. Sustainability reporting can first be traced back to which continent - Answer- Europe
The four climate change issues the SEC expected registrants to consider for disclosure
in the SEC's report, "Commission Guidance Regarding Disclosure Related to Climate
Change," included all of the following, - Answer- a) The impact of legislation and
regulation
b) The impact of international accords or treaties
c) Indirect consequences of regulation or business trends
d) Physical impacts of climate change
4. The four climate change issues the SEC expected registrants to consider for
disclosure in the SEC's report, "Commission Guidance Regarding Disclosure Related to
Climate Change," included all of the following, except: - Answer- b) The impact on
available qualified employees
3 ways that firms can create value through sustainability development, reporting and
efforts - Answer- a) Advanced preparation for future governmental taxation and
regulatory programs
b) Gaining a competitive advantage in the eyes of the many current and prospective
stakeholders
c) Increased employee retention and morale
not one of the 3 ways that firms can create value through sustainability development,
reporting and efforts - Answer- Reduced dependence on technology
The Big Four public accounting firms have promoted variations of sustainability
reporting - Answer- true
7. In the context of sustainability efforts, the initials GRI stand for what three words -
Answer- integration, implementation and integrity
, 8. The format and content of existing sustainability reports are not standardized and
range in quality and reliability - Answer- true
9. Positive Assurance means - Answer- The accountants can say whether or not the
sustainability disclosures are fairly presented.
An organization's knowledge of its sustainability performance is about identifying risks,
and opportunities - Answer- true
Intangible assets are more vulnerable to impairment in value by mismanagement than
Property, Plant & Equipment assets. - Answer- true
12. The "sustainable, responsible, and impact investing" field had grown to what
percentage of the total assets under management of 36.8 trillion, per a report issued in
2014? - Answer- 18%
13. When you hear the initials ESG in the context of sustainability they are typically
referring to what three words - Answer- Economic, social and governance
14. Which Supreme Court Justice spoke early in the past century about the benefits of
disclosure as, "Publicity is justly commended as a remedy for social and industrial
diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient
policeman - Answer- Justice Louis Brandeis
15. The history of the Securities Act demonstrates that it was intended to - Answer-
Protect investors
Of the EGSEE sustainability dimensions discussed which two does our text consider the
reporting on to be more standardized, currently, than the others? - Answer- economic &
Governance
"Connected reporting" as introduced by the Prince of Wales's Accounting for
Sustainability initiative emphasizes organizations reporting on their various performance
dimensions as they are linked to their: - Answer- Strategic objectives
What trend appears to have increased investor interest in nonfinancial information? -
Answer- Decreased relevance of financial statements to market capitalization
The fiduciary's duty of loyalty calls for impartial treatment of different types of
beneficiaries, including different generations. - Answer- true
Securities on the NYSE lost what percent of their value between September 1929 and
June 1932? - Answer- 80%
The Public Company Accounting Oversight Board (PCAOB) was created in reaction to
the - Answer- The scandals at Enron and WorldCom
QUESTIONS WITH CORRECT ANSWERS
Criteria required in order for an enterprise to be considered sustainable - Answer- a)
Socially justified
b) Environmentally sound
c) Increases public wealth with proper mechanisms for its distribution
d) Ethically conducted
three words that begin with a "p" are commonly used in reference to the "triple bottom
line" - Answer- Performance(profit), people & planet
3. Sustainability reporting can first be traced back to which continent - Answer- Europe
The four climate change issues the SEC expected registrants to consider for disclosure
in the SEC's report, "Commission Guidance Regarding Disclosure Related to Climate
Change," included all of the following, - Answer- a) The impact of legislation and
regulation
b) The impact of international accords or treaties
c) Indirect consequences of regulation or business trends
d) Physical impacts of climate change
4. The four climate change issues the SEC expected registrants to consider for
disclosure in the SEC's report, "Commission Guidance Regarding Disclosure Related to
Climate Change," included all of the following, except: - Answer- b) The impact on
available qualified employees
3 ways that firms can create value through sustainability development, reporting and
efforts - Answer- a) Advanced preparation for future governmental taxation and
regulatory programs
b) Gaining a competitive advantage in the eyes of the many current and prospective
stakeholders
c) Increased employee retention and morale
not one of the 3 ways that firms can create value through sustainability development,
reporting and efforts - Answer- Reduced dependence on technology
The Big Four public accounting firms have promoted variations of sustainability
reporting - Answer- true
7. In the context of sustainability efforts, the initials GRI stand for what three words -
Answer- integration, implementation and integrity
, 8. The format and content of existing sustainability reports are not standardized and
range in quality and reliability - Answer- true
9. Positive Assurance means - Answer- The accountants can say whether or not the
sustainability disclosures are fairly presented.
An organization's knowledge of its sustainability performance is about identifying risks,
and opportunities - Answer- true
Intangible assets are more vulnerable to impairment in value by mismanagement than
Property, Plant & Equipment assets. - Answer- true
12. The "sustainable, responsible, and impact investing" field had grown to what
percentage of the total assets under management of 36.8 trillion, per a report issued in
2014? - Answer- 18%
13. When you hear the initials ESG in the context of sustainability they are typically
referring to what three words - Answer- Economic, social and governance
14. Which Supreme Court Justice spoke early in the past century about the benefits of
disclosure as, "Publicity is justly commended as a remedy for social and industrial
diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient
policeman - Answer- Justice Louis Brandeis
15. The history of the Securities Act demonstrates that it was intended to - Answer-
Protect investors
Of the EGSEE sustainability dimensions discussed which two does our text consider the
reporting on to be more standardized, currently, than the others? - Answer- economic &
Governance
"Connected reporting" as introduced by the Prince of Wales's Accounting for
Sustainability initiative emphasizes organizations reporting on their various performance
dimensions as they are linked to their: - Answer- Strategic objectives
What trend appears to have increased investor interest in nonfinancial information? -
Answer- Decreased relevance of financial statements to market capitalization
The fiduciary's duty of loyalty calls for impartial treatment of different types of
beneficiaries, including different generations. - Answer- true
Securities on the NYSE lost what percent of their value between September 1929 and
June 1932? - Answer- 80%
The Public Company Accounting Oversight Board (PCAOB) was created in reaction to
the - Answer- The scandals at Enron and WorldCom
