PRE-ASSESSMENT: BUSINESS LAW FOR
ACCOUNTANT
1. An internal auditor is drafting a code of conduct as instructed by the chief audit
executive. The company is privately held and is a large manufacturer.What is a
requirement of a private company's code of conduct? - ANS☑☑---It indicates
how employees should act.
2. A CEO thinks it is time to talk about business ethics to senior management. She is
developing a list of talking points. What is a fundamental ethical issue that must
be included in these talking points? - ANS☑☑---Developing integrity and trust
3. A hardware store proactively informs clients whenever recalls happen. It is always
willing to replace defective items at no cost even if the warranty has expired. Its
philosophy is to maximize benefits and minimize harm. This approach is known as
outcome-based ethics. What is a characteristic of outcome-based ethics? -
ANS☑☑---It focuses on the consequences of an action.
4. A floral company is currently hiring a new employee. After interviewing a great
candidate, the human resources coordinator looked up the candidate on social
media. The human resources coordinator found too many pictures of cocktails
and beers on the candidate's profile. The prospective candidate worked part-time
as a bartender. The human resources coordinator called the candidate and told
him that she found a better fit even when she had not hired anyone for the
position. Are the human resources coordinator's actions legal and ethical? -
ANS☑☑---The actions are legal but unethical.
5. Due to booming business, a manufacturing company hired two new employees
for a rate of $15 per hour. Previous hires were paid a rate of $26 per hour. After
analyzing the reduction on labor costs, the accountant recommended replacing
the existing workers by less expensive workers. Is this accountant's
, recommendation legal? - ANS☑☑---Yes, because firing employees and hiring
new ones for a lower wage is not illegal.
6. A corporation is creating a media campaign. It has not been able to attract any
famous personalities even when it was willing to pay. It believes it is crucial to
have a famous person behind this campaign to succeed. The accountant is out
doing some errands and notices a crowd of people at a corner. He rushes over to
see what is going on and notices a famous actor giving autographs and taking
pictures with people. He asks the famous actor if he could take a picture and the
famous actor agrees. The accountant gives the picture to advertising and tells the
department that the famous actor agreed to have his picture taken. The
corporation releases the media campaign with the famous actor's picture in it.
While browsing on social media, the famous actor sees the campaign and calls his
lawyer. The famous actor's lawyer sues the corporation for using the famous
actor's picture without consent. Do this famous actor's allega - ANS☑☑---Yes,
because the accountant should have explained the purpose of the picture.
7. A local retailer decided to become a corporate citizen as a way to attract recent
college graduates looking for socially responsible employers. It was presented with
the opportunity of changing the plastic bags used to an environmentally friendly
option. This change would cost $10K more than the plastic bags it used, so the
retailer decided not to implement the change. A year later, a new legislation
prohibiting the use of plastic bags was passed. Now that plastic bags cannot be
used, the local retailer tells applicants that it decided to stop using plastic bags as
part of its environmental efforts. Are this local retailer's expressions ethical? -
ANS☑☑---No, because it changed the practice based on a law.
8. Which source of law is considered primary? - ANS☑☑---Common law doctrines
9. What is a purpose of the Uniform Commercial Code? - ANS☑☑---Reduce
difficulties for businesses conducting trade and commerce
ACCOUNTANT
1. An internal auditor is drafting a code of conduct as instructed by the chief audit
executive. The company is privately held and is a large manufacturer.What is a
requirement of a private company's code of conduct? - ANS☑☑---It indicates
how employees should act.
2. A CEO thinks it is time to talk about business ethics to senior management. She is
developing a list of talking points. What is a fundamental ethical issue that must
be included in these talking points? - ANS☑☑---Developing integrity and trust
3. A hardware store proactively informs clients whenever recalls happen. It is always
willing to replace defective items at no cost even if the warranty has expired. Its
philosophy is to maximize benefits and minimize harm. This approach is known as
outcome-based ethics. What is a characteristic of outcome-based ethics? -
ANS☑☑---It focuses on the consequences of an action.
4. A floral company is currently hiring a new employee. After interviewing a great
candidate, the human resources coordinator looked up the candidate on social
media. The human resources coordinator found too many pictures of cocktails
and beers on the candidate's profile. The prospective candidate worked part-time
as a bartender. The human resources coordinator called the candidate and told
him that she found a better fit even when she had not hired anyone for the
position. Are the human resources coordinator's actions legal and ethical? -
ANS☑☑---The actions are legal but unethical.
5. Due to booming business, a manufacturing company hired two new employees
for a rate of $15 per hour. Previous hires were paid a rate of $26 per hour. After
analyzing the reduction on labor costs, the accountant recommended replacing
the existing workers by less expensive workers. Is this accountant's
, recommendation legal? - ANS☑☑---Yes, because firing employees and hiring
new ones for a lower wage is not illegal.
6. A corporation is creating a media campaign. It has not been able to attract any
famous personalities even when it was willing to pay. It believes it is crucial to
have a famous person behind this campaign to succeed. The accountant is out
doing some errands and notices a crowd of people at a corner. He rushes over to
see what is going on and notices a famous actor giving autographs and taking
pictures with people. He asks the famous actor if he could take a picture and the
famous actor agrees. The accountant gives the picture to advertising and tells the
department that the famous actor agreed to have his picture taken. The
corporation releases the media campaign with the famous actor's picture in it.
While browsing on social media, the famous actor sees the campaign and calls his
lawyer. The famous actor's lawyer sues the corporation for using the famous
actor's picture without consent. Do this famous actor's allega - ANS☑☑---Yes,
because the accountant should have explained the purpose of the picture.
7. A local retailer decided to become a corporate citizen as a way to attract recent
college graduates looking for socially responsible employers. It was presented with
the opportunity of changing the plastic bags used to an environmentally friendly
option. This change would cost $10K more than the plastic bags it used, so the
retailer decided not to implement the change. A year later, a new legislation
prohibiting the use of plastic bags was passed. Now that plastic bags cannot be
used, the local retailer tells applicants that it decided to stop using plastic bags as
part of its environmental efforts. Are this local retailer's expressions ethical? -
ANS☑☑---No, because it changed the practice based on a law.
8. Which source of law is considered primary? - ANS☑☑---Common law doctrines
9. What is a purpose of the Uniform Commercial Code? - ANS☑☑---Reduce
difficulties for businesses conducting trade and commerce
