Business Ethics and Governance

31. The chairperson of the board of directors and CEO should be leaders with:

1. Vision and problem solving skills.
2. The ability to motivate.
3. Business acumen.
4. All of the above.

32. The corporate governance structure of a company reflects the individual companies’:

1. Cultural and economic system.
2. Legal and business system.
3. Social and regulatory system.
4. All of the above.

33. The first step in the auditing process should be to secure the commitment of:

1. employees.
2. top executives and directors.
3. stockholders.
4. customers.

34. The four types of social responsibility include:

1. legal, philanthropic, economic, and ethical
2. ethical, moral, social, and economic
3. philanthropic, justice, economic, and ethical
4. legal, moral, ethical, and economic

35. The goal of corporate governance and business ethics education is to:

1. Teach students their professional accountability and to uphold their personal Integrity to society.
2. Change the way in which ethics is taught to students.
3. Create more ethics standards by which corporate professionals must operate.
4. Increase the workload for accounting students.

36. The hand-of-government refers to the

1. ability of the government to interfere in business negotiations
2. role of corporations to be profitable within the law
3. effect of national politics on business decisions
4. impact of changing government regulations

37. The internal audit function is least effective when the department:

1. Is non-independent.
2. Is competent.
3. Is objective.
4. Exhibits integrity

38. The primary stakeholders are:

1. Customers.
2. Suppliers.
3. Shareholders.
4. Creditors.

39. The social economy partnership philosophy emphasizes:

1. cooperation and assistance.
2. profit maximization.
3. competition.
4. restricting resources and support.

40. The view that business exists at society's pleasure and businesses should meet public expectations of social responsibility is the

1. iron law of responsibility argument
2. enlightened self-interest argument
3. capacity argument
4. anti-freeloader argument