Deck 2: Business Sustainability

Question 1

The statement relating to ethics that is not true is:

A)A high standard of ethical behaviour is in the long-term interests of an organisation.
B)Ethical decisions are always easy to make.
C)Ethics is concerned with whether human actions are proper or improper.
D)Stakeholders deserve ethical behaviour from a firm's management.

Answer 1

Stakeholders deserve ethical behaviour from a firm's management.

Question 2

There are three main components to the GRI reporting framework.Which of the following is not one of the components?

A)financial reporting protocols
B)the technical protocol
C)sector supplements giving extra relevant information on various industries.
D)the sustainability reporting guidelines

Answer 2

financial reporting protocols

Question 3

The statement relating to ethics that is true is:

A)Statements of best practice are a part of providing good corporate governance.
B)Resolving ethical issues outside an organisation is always the best solution to ethical dilemmas.
C)Insider trading is not illegal.
D)There is no distinction between the rules of morality and the rules of prudence.

Answer 3

Statements of best practice are a part of providing good corporate governance.

Question 4

Acting morally is generally,but not always prudent.Which of the following is an example of acting prudently but not morally?

A)keeping staff employed during the global financial crisis despite a downturn in turnover
B)hiring disabled staff despite the fact that productivity might be lower in some cases.
C)delaying the payment of accounts payable
D)disclosing information

Question 5

The concept of the triple bottom line states that an entity is responsible for the areas of:

A)economic,social and ethical performance.
B)economic,social and environmental performance.
C)economic,environmental and ethical performance.
D)social,environmental and ethical performance.

Question 6

Which of the following is not an element of triple bottom line reporting?

A)economic performance
B)social performance
C)environmental performance
D)ethical performance

Question 7

It is not a legal requirement for entities to report on:

A)financial performance
B)financial position
C)sustainability
D)cash flows for the period

Question 8

Which of these is not an ethical principle?

A)The greatest good for the greatest number
B)The end does not justify the means
C)Do unto others as you would have them do unto you
D)The end justifies the means

Question 9

Which of these types of behaviour would be regarded as ethical?

A)Blaming others for your mistakes
B)An employee using confidential information for personal gain
C)Deceptive advertising
D)Timely disclosure of unfavourable information as required by law

Question 10

For a company,corporate governance responsibilities ultimately rest with:

A)individual managers.
B)the Australian Securities and Exchange Commission.
C)the board of directors.
D)the shareholders.

Question 11

Which of the following is a key driver of business sustainability?

A)Economic Globalization
B)Competition for Resources
C)Climate Change
D)All the options are key drivers of business sustainability

Question 12

Ultimate legal responsibility for the financial statements of a company rests with the:

A)Accounting firm employed to produce the reports.
B)Board of directors.
C)CEO.
D)ASX.

Question 13

The collective term for any individual or group with an interest in the success of an entity is:

A)stakeholder.
B)shareholder.
C)creditor.
D)employee.

Question 14

Which of the following is not a key factor in the effectiveness of a board of directors is:

A)diversity.
B)independence.
C)competence.
D)subjectivity.

Question 15

Which of the following is not believed to be a motive for entities to act in a socially responsible manner?

A)ultimately there will be some benefit realised in their profits
B)entities want to limit interference from government or other groups
C)they must do so in order to comply with the Corporations Act 2001
D)the desire of managers to do the right thing

Question 16

The thinking underlying the development of economics is based on John Stuart Mills' theory that:

A)behaviour should be based on what provides the greatest good to the greatest number
B)behaviour should be based on what is best for the individual
C)behaviour should be based on taking advantage of people to achieve a certain end
D)behaviour should be based on treating loyal customers and suppliers favourably

Question 17

Acting morally is generally,but not always prudent.Which of the following is an example of acting morally but not prudently?

A)sacking staff during an economic downturn
B)hiring disabled staff despite the fact that productivity might be lower in some cases.
C)delaying the payment of accounts payable
D)withholding information

Question 18

Ethically,stakeholders other than shareholders:

A)are irrelevant,as shareholders own the business.
B)should be encouraged to become shareholders.
C)are important as they generally contribute value to an entity.
D)are more important as they may not be able to afford to buy shares,leaving them vulnerable.

Question 19

The underlying concept of triple bottom line reporting is in line with:

A)agency theory
B)shareholder value
C)stakeholder theory
D)stewardship theory

Question 20

Kantian philosophy is grounded in the notion:

A)that people should be treated as a mean's to other people's ends.
B)of respect for the individual
C)the need for individuals to maximise their utility
D)of maximising the utility of society

Question 21

Theories concerned with the consequences of decisions are known as:

A)relativism theories
B)normative theories
C)teleological theories
D)deontological theories

Question 22

___________ ____________ line reporting

Question 23

Behaviour conforming to acceptable moral standards is said to be __________ behaviour.

Question 24

_____________________ value is the view that the purpose of the corporation is to maximize shareholder wealth

Question 25

The key drivers of sustainability are competition for resources,climate change,__________________ globalization and advances in digital communication.

Question 26

A factor which has not been a major reason for heightened interest in business ethics is:

A)the introduction of the GST
B)corporate collapses
C)the community becoming more educated and aware
D)globalisation

Question 27

Which of these practices is regarded as being inherently unethical?

A)Tipping
B)Bribery
C)All the practices are ethical
D)Prompt payment of account payable

Question 28

APES 110 Code of Ethics for Professional Accountants is issued by:

A)CPA Australia
B)the Institute of Chartered Accountant in Australia
C)APESB the Accounting Professional & Ethical Standards Board
D)ACCC Australian Competition and Consumer Commission

Question 29

The overriding application of the joint code of ethics of CPA Australia and the Institute of Chartered Accountants in Australia is:

A)Responsibility to act objectivity
B)Responsibility to act in the public interest
C)Responsibility to have competence
D)Responsibility to act with integrity

Question 30

When faced with a moral dilemma,making an ethical decision is:

A)easy because it will always lead to the most profitable outcome.
B)easy as there is always one simple solution to the problem.
C)difficult,as the decision may be controversial.
C
D)not necessary.

Question 31

The major criticism of personal financial planners in Australia is:

A)they are paid too much
B)lack of qualifications
C)lack of independence
D)lack of confidentiality

Question 32

Responsibilities of the board of directors are set out in the ______________ Act 2001

Question 33

Deontological theories are concerned with duty.Which of these would fall under the deontological grouping?

A)Utilitarianism
B)Ethical egoism
C)Kantianism
D)Psychological egoism

Question 34

Directors owe a legal duty to their company to act in _______ _________ and in the best interests of the company.

Question 35

According to Carroll discretionary responsibilities are carried out

A)on a voluntary basis to meet society's expectations.
B)on a voluntary basis to keep ahead of society's expectations.
B
C)because they always leads to higher profits.
D)because they are required by the accounting standards.

Question 36

Individuals or groups that have an interest in the affairs of an entity are known as ________________________.

Question 37

_________________ theory describes the relationship between owners of (shareholders)and managers of an entity.

Question 38

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as ________________ development.

Question 39

The statement concerning utilitarianism that is not true is:

A)It is a teleological theory
B)It is concerned with individuals maximising their utilities
C)It makes sure minority groups are looked after
D)Jeremy Bentham defined utility as happiness

Question 40

An entity's obligations to society in general and also the environment are known as _________________________________.

Question 41

An employee publicly exposing unethical practices in a company is known as a ____________________.

Question 42

According to Carroll (1979)the four key responsibilities of business are economic,legal,ethical and ____________________.

Question 43

Not disclosing information acquired in the course of your work,to third parties without specific authority is known as maintaining ______________.

Question 44

__________ trading is the trading of shares based on confidential information that is not known to the public at large.

Question 45

The saying 'the ____________ good for the greatest number' embodies an ethical principle.