ETHICS LLQP COMPREHENSIVE STUDY
GUIDE 2026 PROFESSIONAL CONDUCT
PRINCIPLES SOLUTIONS VERIFIED A+
◉ Why would it be a mistake to ignore secondary stakeholders?
Answer: They can be an ally or a threat to an organization.
◉ Leaders who display good character________________________
Answer: take responsibility for ethically meeting stakeholder needs.
◉ What is true about how ethical leaders should perceive
stakeholders?
Answer: Ethical leaders view stakeholders as important co-
contributors of firm value.
◉ What is the first step organizations must take to meet the needs of
their stakeholders?
Answer: Gather data on the company's stakeholders.
◉ What is one way that ethical leaders can empower employees?
Answer: Creating an open communication environment.
,◉ Which statement is true regarding the aftermath of the financial
crisis
Answer: Consumer trust of business hit a low point.
◉ What is one of the biggest ethical risks that companies face?
Answer: Complacency
◉ What is true about ethical leaders?
Answer: Ethical leaders place company interests above their own.
◉ What are the benefits of ethical leadership?
Answer: Employees are more willing to work for ethical companies.
◉ Which of the following differentiates ethical leaders from less
ethical leaders?
Answer: How they respond to mistakes
◉ What similarity do they share that contributes to their firm's
ethical cultures?
Answer: They have the ability to align employees behind a common
vision.
, ◉ Why might ethics mistakes actually improve an organization in
the long-run?
Answer: They give the firm an opportunity to learn from its
mistakes.
◉ According to Howard Schultz, which of the following is true about
ethical leadership?
Answer: It is about finding a way to balance between profitability
and social consciousness.
◉ Which statement is true about the ethical decision-making of
leaders?
Answer: Ethical leaders must often make trade-offs regarding
stakeholder demands.
◉ Based on observations of J. P. Morgan CEO James Dimon's reaction
to a crisis, what is a good way to manage a crisis?
Answer: Act quickly and take responsibility for the issues.
◉ What is the fate of ethically-challenged CEOs?
Answer: They often face reputational damage.
◉ What likely contributed to the flawed corporate culture at
Countrywide Financial?
GUIDE 2026 PROFESSIONAL CONDUCT
PRINCIPLES SOLUTIONS VERIFIED A+
◉ Why would it be a mistake to ignore secondary stakeholders?
Answer: They can be an ally or a threat to an organization.
◉ Leaders who display good character________________________
Answer: take responsibility for ethically meeting stakeholder needs.
◉ What is true about how ethical leaders should perceive
stakeholders?
Answer: Ethical leaders view stakeholders as important co-
contributors of firm value.
◉ What is the first step organizations must take to meet the needs of
their stakeholders?
Answer: Gather data on the company's stakeholders.
◉ What is one way that ethical leaders can empower employees?
Answer: Creating an open communication environment.
,◉ Which statement is true regarding the aftermath of the financial
crisis
Answer: Consumer trust of business hit a low point.
◉ What is one of the biggest ethical risks that companies face?
Answer: Complacency
◉ What is true about ethical leaders?
Answer: Ethical leaders place company interests above their own.
◉ What are the benefits of ethical leadership?
Answer: Employees are more willing to work for ethical companies.
◉ Which of the following differentiates ethical leaders from less
ethical leaders?
Answer: How they respond to mistakes
◉ What similarity do they share that contributes to their firm's
ethical cultures?
Answer: They have the ability to align employees behind a common
vision.
, ◉ Why might ethics mistakes actually improve an organization in
the long-run?
Answer: They give the firm an opportunity to learn from its
mistakes.
◉ According to Howard Schultz, which of the following is true about
ethical leadership?
Answer: It is about finding a way to balance between profitability
and social consciousness.
◉ Which statement is true about the ethical decision-making of
leaders?
Answer: Ethical leaders must often make trade-offs regarding
stakeholder demands.
◉ Based on observations of J. P. Morgan CEO James Dimon's reaction
to a crisis, what is a good way to manage a crisis?
Answer: Act quickly and take responsibility for the issues.
◉ What is the fate of ethically-challenged CEOs?
Answer: They often face reputational damage.
◉ What likely contributed to the flawed corporate culture at
Countrywide Financial?
