ETHICS AND PROFESSIONAL CONDUCT
UPDATED EXAM 2 ACTUAL TEST PAPER 2026
QUESTIONS SOLUTIONS GRADED A+
◉ The title "ethics officer" did not exist until the early 1990s.
Answer: false.
◉ Depending on the organization's culture, the word "ethics" may
carry a negative connotation and need to be replaced with "business
conduct."
Answer: true.
◉ Ethics only needs to be communicated in orientation materials for
new employees.
Answer: false.
◉ An "ethics action line" is unnecessary because it promotes
"tattling" on people an employee doesn't like.
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.
,Answer: false.
◉ Pursuant to the U. S. Sentencing Guidelines, an organization can
be convicted even if only one employee is caught breaking the law.
Answer: true.
◉ According to United States v. Booker, judges are no longer
required to follow strictly the U. S. Sentencing Guidelines.
Answer: true.
◉ 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.
Answer: true.
◉ Centralized ethics offices are nearly always the best choice as
these provide for greater consistency and commitment to the
organization's key values.
Answer: false.
◉ Seldom should ethics information be included in a company's
external website.
Answer: false.
,◉ 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.
Answer: true.
◉ An organization can be convicted of a crime even if only one
employee breaks the law.
Answer: true.
◉ In extreme cases, the US Sentencing Commission allows "death
penalty" wherein the organization ceases to exist.
Answer: true.
◉ The ethics officer is typically a middle-level manager.
Answer: false.
◉ Research has shown that between ___________ of the information
that passes through the grapevine is accurate.
Answer: 70 to 90%.
◉ __________ understand and follow the rules and policies of the
organization. They also have the judgment to discern the difference
between right and wrong.
Answer: good soldiers.
, ◉ ___________ may have good ethical compasses, but they don't know
their corporation's policies. Without guidance, ethics may not even
be a consideration.
Answer: loose cannons.
◉ ___________ have their own agenda and lack any company or
professional loyalty.
Answer: grenades.
◉ Mission statements should be written by outsiders who are
unbiased.
Answer: false.
◉ When designing a policy manual:
Answer: important policies should be communicated in short
brochures.
◉ When communicating a code of conduct:
Answer: focus on values that should guide decision making.
◉ Your friend, Sam, has been selected to create a new ethics training
program at work. What advice should you give Sam?
UPDATED EXAM 2 ACTUAL TEST PAPER 2026
QUESTIONS SOLUTIONS GRADED A+
◉ The title "ethics officer" did not exist until the early 1990s.
Answer: false.
◉ Depending on the organization's culture, the word "ethics" may
carry a negative connotation and need to be replaced with "business
conduct."
Answer: true.
◉ Ethics only needs to be communicated in orientation materials for
new employees.
Answer: false.
◉ An "ethics action line" is unnecessary because it promotes
"tattling" on people an employee doesn't like.
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.
,Answer: false.
◉ Pursuant to the U. S. Sentencing Guidelines, an organization can
be convicted even if only one employee is caught breaking the law.
Answer: true.
◉ According to United States v. Booker, judges are no longer
required to follow strictly the U. S. Sentencing Guidelines.
Answer: true.
◉ 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.
Answer: true.
◉ Centralized ethics offices are nearly always the best choice as
these provide for greater consistency and commitment to the
organization's key values.
Answer: false.
◉ Seldom should ethics information be included in a company's
external website.
Answer: false.
,◉ 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.
Answer: true.
◉ An organization can be convicted of a crime even if only one
employee breaks the law.
Answer: true.
◉ In extreme cases, the US Sentencing Commission allows "death
penalty" wherein the organization ceases to exist.
Answer: true.
◉ The ethics officer is typically a middle-level manager.
Answer: false.
◉ Research has shown that between ___________ of the information
that passes through the grapevine is accurate.
Answer: 70 to 90%.
◉ __________ understand and follow the rules and policies of the
organization. They also have the judgment to discern the difference
between right and wrong.
Answer: good soldiers.
, ◉ ___________ may have good ethical compasses, but they don't know
their corporation's policies. Without guidance, ethics may not even
be a consideration.
Answer: loose cannons.
◉ ___________ have their own agenda and lack any company or
professional loyalty.
Answer: grenades.
◉ Mission statements should be written by outsiders who are
unbiased.
Answer: false.
◉ When designing a policy manual:
Answer: important policies should be communicated in short
brochures.
◉ When communicating a code of conduct:
Answer: focus on values that should guide decision making.
◉ Your friend, Sam, has been selected to create a new ethics training
program at work. What advice should you give Sam?
