Question 1

Which of the following statements represents a situation where an employee's loyalties may be divided?

Accepted Answer

An employee who operates a small business on the side and often takes stationary from his day job to use for his personal business would be an example of divided loyalties.

Question 2

Many firms have policies and procedures covering social media. Which one of the following statements best describes why?

Accepted Answer

Many firms have policies and procedures covering social media because social media can potentially be an outlet whereby a conflict of interest is created for employees.

Question 3

Which one of the following statements best describes why companies may be concerned about employees working second or third jobs?

Accepted Answer

Companies may be concerned about an employee working second or third jobs because it may cause him or her to pay less attention and his or her performance may suffer at the first job.

Question 4

In a scenario where an employee is working multiple jobs, which one of the following statements best describes what should be done?

Accepted Answer

In a scenario where an employee is working multiple jobs, it is up to the employee to become aware of and ethically handle any conflicts of interest that may arise.

Question 5

Which one of the following statements best describes why many companies prohibit or at minimum require prompt disclosure of workplace relationships?

Accepted Answer

Many companies prohibit or at minimum require prompt disclosure of workplace relationships because such a relationship could potentially cause an issue with favoritism and may make other employees feel discouraged.

Question 6

Which one of the following statements best describes a potential issue associated with a firm's employees initiating a start-up firm outside their regular working hours?

Accepted Answer

A potential issue associated with a firm's employees initiating a start-up firm outside their regular working hours is that employees might take ideas and processes from the firm and use these in their new venture.

Question 7

Which one of the following statements best describes why the term fiduciary is associated with conflicts of interest?

Accepted Answer

The term fiduciary is associated with conflicts of interest because the term is related to looking after the well-being and welfare of the company and its shareholders above one's own welfare.

Question 8

An executive's fiduciary duty is related to which of the following statements?

Accepted Answer

An executive's fiduciary duty is related to the duty the executive has to the betterment of the firm's shareholders above his or her own betterment.

Question 9

Which one of the following statements best describes an effective method by which an organization may be able to help mitigate conflicts of interest?

Accepted Answer

An effective method by which an organization may be able to help mitigate conflicts of interest is through a clear, concise, and thoughtfully drafted conflict of interest policy.

Question 10

Which of the following statements are true regarding conflict of interest policies in the workplace?

Accepted Answer

Conflict of interest policies in the workplace should appear in the code of conduct, but possibly also in other ancillary places. They can be effective when employees disclose conflicts of interest.

Question 11

Having employees formally sign and acknowledge that they have read and will abide by a formal conflict of interest policy is most likely to produce which one of the following results?

Accepted Answer

Having employees formally sign and acknowledge that they have read and will abide by a formal conflict of interest policy is prudent, as it may make employees feel more responsible and accountable in this area.

Question 12

An employee has become aware of a situation in his personal life that he anticipates will very likely cause a conflict of interest at his full-time job. Which of the following statements represents his best course of action?

Accepted Answer

The employee should proactively proceed with disclosure and err on the side of caution.

Question 13

Which of the following statements are true concerning employee codes of conduct in the United States?

Accepted Answer

Such codes of conduct should be the starting point for other, more specific policies, such as a specific conflict of interest policy. They are optional at some privately held firms.

Question 14

Which of the following statements represents an effective strategy to help employees handle conflicts of interest that may arise?

Accepted Answer

Firms should consider ongoing training programs to help employees recognize conflicts of interest and report them in a timely manner.

Question 15

The most effective conflict of interest training programs

Accepted Answer

The most effective conflict of interest training programs require that employees demonstrate understanding of the material at completion of the course. They may occur annually to reinforce the importance of this area to employees.

Question 16

Effective workplace conflict of interest training programs

Accepted Answer

Effective workplace conflict of interest training programs ask employees to certify their understanding, and also disclose any conflicts at the conclusion of the course.

Question 17

Which of the following statements are critical components of an effective and accessible conflict of interest policy?

Accepted Answer

A critical component of an effective and accessible conflict of interest policy is ensuring that employees understand and are familiar with the disclosure process. Also, ensuring that employees understand that such policies are required, and they must report any incidences of conflicts of interest

Question 18

Which one of the following statements best describes an effective method to help with the ease and timeliness of disclosures of conflicts of interest?

Accepted Answer

An effective method to help with the ease and timeliness of disclosures of conflicts of interest can be using the Internet and Web-based platforms to make disclosure convenient and timely.

Question 19

Which one of the following statements best describes the pervasiveness of conflicts of interest?

Accepted Answer

Because of the pervasiveness of conflicts of interest, employees should consider proactively determining how they might react if such a situation arises.

Question 20

Which of the following actions should an employee take in a situation where an employee is deciding whether or not to disclose a conflict of interest?

Accepted Answer

In a situation where an employee is deciding whether or not to disclose a conflict of interest, an employee should consider what he or she knows about their employer's policy and what is the general intent behind that policy.

Quiz 9: Conflict of Interest