Question 1

Which of the following terms is defined as adherence to rules, laws, standards, and policies?

Accepted Answer

Compliance means "adherence to, or conformance with, rules, laws, standards, and policies" and implies an obligation to uphold pertinent codes of conduct.

Question 2

Which of the following best represents the difference between ethics and compliance?

Accepted Answer

Ethical behavior is guided proactively by a set of moral principles. Obedience to these principles is unenforceable. Compliance is guided by rules, laws, policies, and standards. Failure to comply leads to penalties.

Question 3

Which of the following is the best example of compliance?

Accepted Answer

Ethical behavior is guided proactively by a set of moral principles. Obedience to these principles is unenforceable. Compliance is guided by rules, laws, policies, and standards. Failure to comply leads to penalties.

Question 4

You are watching a movie about the trial of two marines accused of killing another marine. As the story progresses, you learn that the two marines were ordered by their colonel to haze the now-deceased marine because he was not performing up to the regiment's standards. Which of the following best describes the behavior of the two marines?

Accepted Answer

Ethical behavior is guided proactively by a set of moral principles. Obedience to these principles is unenforceable. Compliance is guided by rules, laws, policies, and standards. Failure to comply leads to penalties.

Question 5

Which of the following was the first large-scale regulation of business and forms the foundation of today's regulation of mergers and acquisitions?

Accepted Answer

Enacted in the late nineteenth century, the Sherman Antitrust Act was the first to regulate business on a large scale and was used to break up monopolies. It forms the foundation of today's regulation of mergers and acquisitions.

Question 6

Which of the following best describes the similarity between the Sherman Antitrust Act and the Securities Acts?

Accepted Answer

The Sherman Antitrust Act and the Securities Acts of 1933 and 1934 established an important precedent that underpins many compliance regimes: Making companies transparently report their activities is a powerful check on behavior.

Question 7

All of the following were enacted in response to concerns of the 1960s and 1970s EXCEPT

Accepted Answer

The 1960s and 1970s saw instances of corporate misbehavior and environmental concerns, resulting in the Foreign Corrupt Practices Act and the Clean Air and Clean Water Acts.

Question 8

While listening to her local news, Frances hears a story about a government recall of a spray-on sunscreen found to contain low levels of benzene. Which agency sought to protect public health by issuing that recall?

Accepted Answer

The Food and Drug Administration protects public health, including food, drugs, medical devices, and cosmetics.

Question 9

Graham grew up on a tobacco farm. In college, he rolled his own cigarettes and sold them to fellow students. Now he is attempting to have packages of his cigarettes sold in local bars and convenience stores. Which government agency would attempt to prohibit Graham from illegally trafficking his cigarettes?

Accepted Answer

The Bureau of Alcohol, Tobacco, Firearms and Explosives protects against violent criminals, weapons, illegal trafficking, and terrorism.

Question 10

While planning a family trip, Hector reads an online article warning of potential safety hazards in vacation rental homes. Which government agency most likely wrote or contributed information to this article?

Accepted Answer

The Consumer Product Safety Commission protects against risk of injury or death from consumer product use.

Question 11

Isobel is interviewing for a job as an accounting supervisor. She knows the hiring manager will not discriminate against her because she uses a wheelchair. Which government agency protects Isobel from this type of discrimination?

Accepted Answer

The Equal Employment Opportunity Commission protects against discrimination in employment based on race, color, sex, national origin, age, or disability.

Question 12

Which government agency provides Jamal with the confidence to invest in the U.S. stock market?

Accepted Answer

The Securities and Exchange Commission protects investors, maintains fair and orderly markets, and facilitates capital formation.

Question 13

A commercial airplane crashes into an open field. Which government agency would investigate?

Accepted Answer

The Federal Aviation Administration provides a safe and efficient aerospace system.

Question 14

After a massive chemical spill by a local plant, Katerina is concerned with the safety of her drinking water. Which government agency would ensure her protection?

Accepted Answer

The Environmental Protection Agency protects human health and the natural environment.

Question 15

Based on your reading about Enron, which of the following conclusions can you draw?

Accepted Answer

Unethical behavior by Enron executives caused shareholders to lose over $60 billion and caused more than 20,000 employees to lose their jobs.

Question 16

Which of the following led to the passage of the Sarbanes-Oxley Act (SOX)?

Accepted Answer

The collapse of Enron and Arthur Andersen, as well as other fraudulent behaviors by corporate executives, led to the passage of SOX in 2002, which sought to strengthen accounting and information controls.

Question 17

Which statement most accurately describes the Sarbanes-Oxley Act (SOX)?

Accepted Answer

SOX worked to strengthen internal accounting and information controls within an organization. Company CEOs are required to sign and verify the accuracy of public accounting information.

Question 18

The compliance/regulatory response to the Great Recession of 2007-2009 was the Dodd-Frank Act, which established all of the following EXCEPT

Accepted Answer

The compliance/regulatory response to the Great Recession of 2007-2009 was the Dodd-Frank Act, which established the Financial Stability Oversight Council, the Consumer Financial Protection Bureau, and the Volcker Rule.

Question 19

Erica is a first-time home buyer. Though she is anxious about taking on the responsibility of a mortgage, she has a thorough understanding of her subsequent obligations because of the

Accepted Answer

e Consumer Financial Protection Bureau was established to prevent predatory mortgage lending and to make it easier for consumers to understand the obligations they incurred when taking out a mortgage.

Question 20

Briefly describe the evolution of corporate compliance.

Accepted Answer

The answer of Briefly describe the evolution of corporate compliance....

Quiz 5: Ethics and Compliance in the Corporation

Which of the following terms is defined as adherence to rules, laws, standards, and policies?

Which of the following best represents the difference between ethics and compliance?

Which of the following is the best example of compliance?

Which of the following was the first large-scale regulation of business and forms the foundation of today's regulation of mergers and acquisitions?

Which of the following best describes the similarity between the Sherman Antitrust Act and the Securities Acts?

All of the following were enacted in response to concerns of the 1960s and 1970s EXCEPT

While listening to her local news, Frances hears a story about a government recall of a spray-on sunscreen found to contain low levels of benzene. Which agency sought to protect public health by issuing that recall?

While planning a family trip, Hector reads an online article warning of potential safety hazards in vacation rental homes. Which government agency most likely wrote or contributed information to this article?

Isobel is interviewing for a job as an accounting supervisor. She knows the hiring manager will not discriminate against her because she uses a wheelchair. Which government agency protects Isobel from this type of discrimination?

Which government agency provides Jamal with the confidence to invest in the U.S. stock market?

A commercial airplane crashes into an open field. Which government agency would investigate?

After a massive chemical spill by a local plant, Katerina is concerned with the safety of her drinking water. Which government agency would ensure her protection?

Based on your reading about Enron, which of the following conclusions can you draw?

Which of the following led to the passage of the Sarbanes-Oxley Act (SOX) ?

Which statement most accurately describes the Sarbanes-Oxley Act (SOX) ?

The compliance/regulatory response to the Great Recession of 2007-2009 was the Dodd-Frank Act, which established all of the following EXCEPT

Erica is a first-time home buyer. Though she is anxious about taking on the responsibility of a mortgage, she has a thorough understanding of her subsequent obligations because of the

Briefly describe the evolution of corporate compliance.