Business & Professional Ethics 7e Leonard Brooks Paul Dunn (Test
Bank All Chapters, 100% Original Verified, A+ Grade)
Business & Professional Ethics for Directors, Executives & Accountants, 7e
Multiple Choice Questions
Chapter 1 Ethics Expectations
1) 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. Credibility gap
b. Expectations gap
c. Audit gap
d. Stewardship gap
e. None of the above
ANSWER: b
2) Which of the following is not a trend described in Chapter 1 as having an impact on the
ethics of business?
a. Directors’ legal liability
b. Management’s stated intention to protect reputation
c. Auditors’ legal liability
d. Management’s assertions to shareholders on the adequacy of internal controls
e. Management’s stated intention to manage risk
ANSWER: c
3) Which corporate report discusses subjects that include environmental, health and safety,
philanthropic and other social impacts?
a. Corporate annual report
b. Corporate social responsibility report
c. Corporate quarterly report
d. Corporate stakeholder report
e. Corporate ethics committee report
ANSWER: b
4) 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 the above
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 1
L.J. Brooks & P. Dunn, Cengage Learning, 2015
,ANSWER: c
5) Ethical corporate behavior is expected to lead to:
a. Higher profitability in the short-term
b. Higher profitability both in the short-term and long-term
c. Lower profitability in the long-term
d. Higher profitability in the long-term
e. Lower profitability both in the short-term and long-term
ANSWER: d
6) Which of the following are NOT hypernorms?
a. Honesty
b. Credibility
c. Fairness
d. Integrity
e. Predictability
ANSWER: b
7) A value that is almost universally respected by stakeholder groups is:
a. Super norm
b. Alfa norm
c. Value norm
d. Hypernorm
e. General norm
ANSWER: d
8) Since the mid-1990s, both management and auditors have become increasingly:
a. Profit management oriented
b. Ethics oriented
c. Value management oriented
d. Risk management oriented
e. Marketing oriented
ANSWER: d or b
9) Ethical investors in a corporation take the view that:
a. The corporation should maximize profits
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 2
L.J. Brooks & P. Dunn, Cengage Learning, 2015
, b. The corporation’s primary concern should be its impact on the environment
c. Their investment should make a reasonable return
d. The corporation should operate in an ethical manner
e. Both c and d
ANSWER: e
10) The following would be a key control function of the Board of Directors:
a. Set guidance and boundaries
b. Appoint CEO
c. Approve the sale of company’s assets
d. Decide on the company’s auditor
e. All of the above
ANSWER: e
11) All of these are essential elements required to develop a culture of integrity EXCEPT:
a. Clear communication
b. Reinforcement of ethics
c. A personal commitment by senior management
d. The appointment of an ethics officer
e. All of the above
ANSWER: d
12) Which of these risks caused a 25% or more drop in share value between 1993 and 1998?
a. Strategic
b. Operational
c. Financial
d. Hazard
e. Ethics
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
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 3
L.J. Brooks & P. Dunn, Cengage Learning, 2015
, 14) Not reporting environmental issues is an example of:
a. Lack of transparency
b. Lack of integrity
c. Lack of accuracy
d. All of the above
e. None of the above
ANSWER: b
15) Incomplete disclosure of the company’s revenue recognition policy is an example of:
a. Lack of transparency
b. Lack of integrity
c. Lack of accuracy
d. All of the above
e. None of the above
ANSWER: a
16) This philosophical approach requires that an ethical decision depends upon the duty, rights,
and justice involved:
a. Consequentialism
b. Virtue ethics
c. Duty ethics
d. Righteousness
e. Deontology
ANSWER: e
17) The Moral Standards Approach focuses on the following dimensions of the impact of a
proposed action:
a. Net benefit to society, fair to all stakeholders, whether it is right
b. Net benefit to society and whether it is legal
c. Net benefit to society, fair to all stakeholders, whether it is legal
d. Fair to most stakeholders and whether it is right
e. Net benefit to society, fair to most stakeholders, whether it is right
ANSWER: a
18) This organization has developed an international code of conduct for professional
accountant:
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 4
L.J. Brooks & P. Dunn, Cengage Learning, 2015
Bank All Chapters, 100% Original Verified, A+ Grade)
Business & Professional Ethics for Directors, Executives & Accountants, 7e
Multiple Choice Questions
Chapter 1 Ethics Expectations
1) 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. Credibility gap
b. Expectations gap
c. Audit gap
d. Stewardship gap
e. None of the above
ANSWER: b
2) Which of the following is not a trend described in Chapter 1 as having an impact on the
ethics of business?
a. Directors’ legal liability
b. Management’s stated intention to protect reputation
c. Auditors’ legal liability
d. Management’s assertions to shareholders on the adequacy of internal controls
e. Management’s stated intention to manage risk
ANSWER: c
3) Which corporate report discusses subjects that include environmental, health and safety,
philanthropic and other social impacts?
a. Corporate annual report
b. Corporate social responsibility report
c. Corporate quarterly report
d. Corporate stakeholder report
e. Corporate ethics committee report
ANSWER: b
4) 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 the above
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 1
L.J. Brooks & P. Dunn, Cengage Learning, 2015
,ANSWER: c
5) Ethical corporate behavior is expected to lead to:
a. Higher profitability in the short-term
b. Higher profitability both in the short-term and long-term
c. Lower profitability in the long-term
d. Higher profitability in the long-term
e. Lower profitability both in the short-term and long-term
ANSWER: d
6) Which of the following are NOT hypernorms?
a. Honesty
b. Credibility
c. Fairness
d. Integrity
e. Predictability
ANSWER: b
7) A value that is almost universally respected by stakeholder groups is:
a. Super norm
b. Alfa norm
c. Value norm
d. Hypernorm
e. General norm
ANSWER: d
8) Since the mid-1990s, both management and auditors have become increasingly:
a. Profit management oriented
b. Ethics oriented
c. Value management oriented
d. Risk management oriented
e. Marketing oriented
ANSWER: d or b
9) Ethical investors in a corporation take the view that:
a. The corporation should maximize profits
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 2
L.J. Brooks & P. Dunn, Cengage Learning, 2015
, b. The corporation’s primary concern should be its impact on the environment
c. Their investment should make a reasonable return
d. The corporation should operate in an ethical manner
e. Both c and d
ANSWER: e
10) The following would be a key control function of the Board of Directors:
a. Set guidance and boundaries
b. Appoint CEO
c. Approve the sale of company’s assets
d. Decide on the company’s auditor
e. All of the above
ANSWER: e
11) All of these are essential elements required to develop a culture of integrity EXCEPT:
a. Clear communication
b. Reinforcement of ethics
c. A personal commitment by senior management
d. The appointment of an ethics officer
e. All of the above
ANSWER: d
12) Which of these risks caused a 25% or more drop in share value between 1993 and 1998?
a. Strategic
b. Operational
c. Financial
d. Hazard
e. Ethics
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
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 3
L.J. Brooks & P. Dunn, Cengage Learning, 2015
, 14) Not reporting environmental issues is an example of:
a. Lack of transparency
b. Lack of integrity
c. Lack of accuracy
d. All of the above
e. None of the above
ANSWER: b
15) Incomplete disclosure of the company’s revenue recognition policy is an example of:
a. Lack of transparency
b. Lack of integrity
c. Lack of accuracy
d. All of the above
e. None of the above
ANSWER: a
16) This philosophical approach requires that an ethical decision depends upon the duty, rights,
and justice involved:
a. Consequentialism
b. Virtue ethics
c. Duty ethics
d. Righteousness
e. Deontology
ANSWER: e
17) The Moral Standards Approach focuses on the following dimensions of the impact of a
proposed action:
a. Net benefit to society, fair to all stakeholders, whether it is right
b. Net benefit to society and whether it is legal
c. Net benefit to society, fair to all stakeholders, whether it is legal
d. Fair to most stakeholders and whether it is right
e. Net benefit to society, fair to most stakeholders, whether it is right
ANSWER: a
18) This organization has developed an international code of conduct for professional
accountant:
Business & Professional Ethics for Directors, Executives & Accountants, 7e, 4
L.J. Brooks & P. Dunn, Cengage Learning, 2015
