Business and Professional Ethics, 10th Edition
Leonard J. Brooks, Paul Dunn
TEST BANK
Includes All Chapters (1 to 7)
Answers Included
Test Bank | Business and Professional Ethics, 10th Edition by Brooks & Dunn
,Chap 01 10e - Brooks
Indicate the answer choice that best completes the statement or answers the question.
1. Examining the interests of stakeholders is probably required for:
a. High short-term profits.
b. Optimal medium- and longer-term profits.
c. Continuing support from stakeholder groups.
d. Effective risk management.
e. All of these.
ANSWER: a
2. NOCLAR rules or standards are important because they will:
a. Cause businesses to observe No Carbon Required practices.
b. Cause executives to be less aggressive.
c. Cause professional accountants to violate employer confidences.
d. Cause professional accountants to report nonsustainable practices of clients.
e. None of these.
ANSWER: c
3. Nonfinancial measures of performance have become increasingly popular because they are:
a. Better measures of performance than traditional financial measures.
b. Easier to understand than traditional financial measures.
c. Easier to compute than traditional financial measures.
d. Less susceptible to manipulation than traditional financial measures.
e. All of these.
ANSWER: e
4. Ethical corporate behavior is expected to lead to:
a. Higher profitability in the short term.
b. Higher profitability in both the short term and the long term.
c. Lower profitability in the long term.
d. Higher profitability in the long term.
e. Lower profitability in both the short term and the long term.
ANSWER: d
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,Name: Class: Date:
Chap 01 10e - Brooks
5. The following would be a key control function of a board of directors:
a. Set guidance and boundaries.
b. Appoint the CEO.
c. Approve the sale of the company’s assets.
d. Decide on the company’s auditor.
e. All of these.
ANSWER: e
6. The International Federation of Accountants (IFAC):
a. Is not relevant to professional accountants in most industrialized countries.
b. Is not relevant to professional accountants working in industry.
c. Was created to develop global accounting, auditing, and ethics standards for professional accountants.
d. Has the authority to discipline professional accountants.
e. Has an impact on professional accounting practices in less than 20 countries around the world.
ANSWER: c
7. The difference between what the public thinks it is getting in audited financial statements and what the public is
actually getting is known as:
a. The credibility gap.
b. The expectations gap.
c. The audit gap.
d. The stewardship gap.
e. None of these.
ANSWER: b
8. Professional accountants, in their fiduciary role, owe their primary loyalty to:
a. the accounting profession.
b. the client.
c. the general public.
d. government regulations.
e. All of these.
ANSWER: c
9. Most large corporations do not consider these risks in a broad and comprehensive way.
a. Operational risks
b. Reputational risks
c. Credit risks
d. Market risks
e. Ethics risks
ANSWER: e
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, Name: Class: Date:
Chap 01 10e - Brooks
10. This philosophical approach requires that an ethical decision depend upon the duty, rights, and justice involved.
a. Consequentialism.
b. Virtue ethics.
c. Duty ethics.
d. Righteousness.
e. Deontology.
ANSWER: a
11. Effective crisis management could represent:
a. An opportunity to avoid costs.
b. An opportunity to change employees’ perspectives on risk.
c. An opportunity to enhance a company’s reputation.
d. All of these.
e. None of these.
ANSWER: c
12. Incomplete disclosure of a company’s revenue recognition policy is an example of:
a. A lack of transparency.
b. A lack of integrity.
c. A lack of accuracy.
d. All of these.
e. None of these.
ANSWER: a
13. The following are examples of ethics risks faced by employees.
a. Honesty and integrity.
b. Fairness and compassion.
c. Integrity and responsibility.
d. Fairness and integrity.
e. Responsibility and honesty.
ANSWER: b
14. The Modified Moral Standards Approach focuses on the following dimensions of the impact of a proposed action:
a. Whether it provides a net benefit to society, is fair to all stakeholders, is right, and demonstrates the virtues
expected.
b. Whether it provides a net benefit to society and whether it is legal.
c. Whether it provides a net benefit to society, is fair to all stakeholders, and is legal.
d. Whether it is fair to most stakeholders and is right.
e. Whether it provides a net benefit to society, is fair to most stakeholders, and is right.
ANSWER: a
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Leonard J. Brooks, Paul Dunn
TEST BANK
Includes All Chapters (1 to 7)
Answers Included
Test Bank | Business and Professional Ethics, 10th Edition by Brooks & Dunn
,Chap 01 10e - Brooks
Indicate the answer choice that best completes the statement or answers the question.
1. Examining the interests of stakeholders is probably required for:
a. High short-term profits.
b. Optimal medium- and longer-term profits.
c. Continuing support from stakeholder groups.
d. Effective risk management.
e. All of these.
ANSWER: a
2. NOCLAR rules or standards are important because they will:
a. Cause businesses to observe No Carbon Required practices.
b. Cause executives to be less aggressive.
c. Cause professional accountants to violate employer confidences.
d. Cause professional accountants to report nonsustainable practices of clients.
e. None of these.
ANSWER: c
3. Nonfinancial measures of performance have become increasingly popular because they are:
a. Better measures of performance than traditional financial measures.
b. Easier to understand than traditional financial measures.
c. Easier to compute than traditional financial measures.
d. Less susceptible to manipulation than traditional financial measures.
e. All of these.
ANSWER: e
4. Ethical corporate behavior is expected to lead to:
a. Higher profitability in the short term.
b. Higher profitability in both the short term and the long term.
c. Lower profitability in the long term.
d. Higher profitability in the long term.
e. Lower profitability in both the short term and the long term.
ANSWER: d
Page 1
,Name: Class: Date:
Chap 01 10e - Brooks
5. The following would be a key control function of a board of directors:
a. Set guidance and boundaries.
b. Appoint the CEO.
c. Approve the sale of the company’s assets.
d. Decide on the company’s auditor.
e. All of these.
ANSWER: e
6. The International Federation of Accountants (IFAC):
a. Is not relevant to professional accountants in most industrialized countries.
b. Is not relevant to professional accountants working in industry.
c. Was created to develop global accounting, auditing, and ethics standards for professional accountants.
d. Has the authority to discipline professional accountants.
e. Has an impact on professional accounting practices in less than 20 countries around the world.
ANSWER: c
7. The difference between what the public thinks it is getting in audited financial statements and what the public is
actually getting is known as:
a. The credibility gap.
b. The expectations gap.
c. The audit gap.
d. The stewardship gap.
e. None of these.
ANSWER: b
8. Professional accountants, in their fiduciary role, owe their primary loyalty to:
a. the accounting profession.
b. the client.
c. the general public.
d. government regulations.
e. All of these.
ANSWER: c
9. Most large corporations do not consider these risks in a broad and comprehensive way.
a. Operational risks
b. Reputational risks
c. Credit risks
d. Market risks
e. Ethics risks
ANSWER: e
Page 2
, Name: Class: Date:
Chap 01 10e - Brooks
10. This philosophical approach requires that an ethical decision depend upon the duty, rights, and justice involved.
a. Consequentialism.
b. Virtue ethics.
c. Duty ethics.
d. Righteousness.
e. Deontology.
ANSWER: a
11. Effective crisis management could represent:
a. An opportunity to avoid costs.
b. An opportunity to change employees’ perspectives on risk.
c. An opportunity to enhance a company’s reputation.
d. All of these.
e. None of these.
ANSWER: c
12. Incomplete disclosure of a company’s revenue recognition policy is an example of:
a. A lack of transparency.
b. A lack of integrity.
c. A lack of accuracy.
d. All of these.
e. None of these.
ANSWER: a
13. The following are examples of ethics risks faced by employees.
a. Honesty and integrity.
b. Fairness and compassion.
c. Integrity and responsibility.
d. Fairness and integrity.
e. Responsibility and honesty.
ANSWER: b
14. The Modified Moral Standards Approach focuses on the following dimensions of the impact of a proposed action:
a. Whether it provides a net benefit to society, is fair to all stakeholders, is right, and demonstrates the virtues
expected.
b. Whether it provides a net benefit to society and whether it is legal.
c. Whether it provides a net benefit to society, is fair to all stakeholders, and is legal.
d. Whether it is fair to most stakeholders and is right.
e. Whether it provides a net benefit to society, is fair to most stakeholders, and is right.
ANSWER: a
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