Ethical and Professional Standards Final
Exam Fully Solved.
Learning Outcome - Answer Explain the need for high ethical standards in investment industry
Ethical Responsibilities required by the CFA Institute
Explain ethics
Describe the role of a code of ethics in defining a profession
Identify challenges to ethical behavior
Describe the need for high ethical standards in the investment industry
Distinguish between ethical and legal standards
Describe and apply a framework for ethical decision making
stakeholders - Answer the individuals or groups of individuals who could be affected either directly or
indirectly by a decision and thus have an interest, or stake, in the decision.
Moral Principles or Ethical Principles - Answer Beliefs regarding what is good, acceptable, or obligatory
behavior and what is bad, unacceptable, or forbidden behavior
Ethics - Answer Study of moral principles
Code of ethics - Answer written sets of principles
, Standards of conduct - Answer Benchmarks for minimally acceptable behavior of community members
that can help clarify the code of ethics
Which of the following statements is most accurate? Ethics can be described as:
a. a commitment to upholding the law.
b. an individual's personal opinion about right and wrong.
c. a set of moral principles that provide guidance for our behavior. - Answer C is correct. Ethics can be
described as a set of moral principles that provide guidance for our behavior; these may be moral
principles shared by a community or societal group.
Which of the following statements is most accurate? Standards of conduct:
a. are a necessary component of any code of ethics.
b. serve as a general guide regarding proper conduct by members of a group.
c. serve as benchmarks for the minimally acceptable behavior required of members of a group. - Answer
C is correct. Standards of conduct serve as benchmarks for the minimally acceptable behavior required
of members of a group. Some organizations will adopt only a code of ethics, which communicates the
organization's values and overall expectations regarding member behavior. Others may adopt both a
code of ethics and standards of conduct. Standards of conduct identify specific behavior required of
community members and serve as benchmarks for the minimally acceptable behavior of community
members.
Difference between Job, occupation, profession - Answer Job: something someone does to earn a living
Vocation: job or occupation to which someone is particularly well suited and is very dedicated
Exam Fully Solved.
Learning Outcome - Answer Explain the need for high ethical standards in investment industry
Ethical Responsibilities required by the CFA Institute
Explain ethics
Describe the role of a code of ethics in defining a profession
Identify challenges to ethical behavior
Describe the need for high ethical standards in the investment industry
Distinguish between ethical and legal standards
Describe and apply a framework for ethical decision making
stakeholders - Answer the individuals or groups of individuals who could be affected either directly or
indirectly by a decision and thus have an interest, or stake, in the decision.
Moral Principles or Ethical Principles - Answer Beliefs regarding what is good, acceptable, or obligatory
behavior and what is bad, unacceptable, or forbidden behavior
Ethics - Answer Study of moral principles
Code of ethics - Answer written sets of principles
, Standards of conduct - Answer Benchmarks for minimally acceptable behavior of community members
that can help clarify the code of ethics
Which of the following statements is most accurate? Ethics can be described as:
a. a commitment to upholding the law.
b. an individual's personal opinion about right and wrong.
c. a set of moral principles that provide guidance for our behavior. - Answer C is correct. Ethics can be
described as a set of moral principles that provide guidance for our behavior; these may be moral
principles shared by a community or societal group.
Which of the following statements is most accurate? Standards of conduct:
a. are a necessary component of any code of ethics.
b. serve as a general guide regarding proper conduct by members of a group.
c. serve as benchmarks for the minimally acceptable behavior required of members of a group. - Answer
C is correct. Standards of conduct serve as benchmarks for the minimally acceptable behavior required
of members of a group. Some organizations will adopt only a code of ethics, which communicates the
organization's values and overall expectations regarding member behavior. Others may adopt both a
code of ethics and standards of conduct. Standards of conduct identify specific behavior required of
community members and serve as benchmarks for the minimally acceptable behavior of community
members.
Difference between Job, occupation, profession - Answer Job: something someone does to earn a living
Vocation: job or occupation to which someone is particularly well suited and is very dedicated
