The Corporate Compliance Quiz! Trivia

1.

Who is the corporate compliance officer?

A.

The board president
B.

The executive director, Kathleen Claybrook
C.

A lawyer
D.

The vice president

Correct Answer
B. The executive director, Kathleen Claybrook

Explanation
"With oversight by the Board of Directors, this Compliance Program will primarily be directed and implemented by a Corporate Compliance Officer ("Compliance Officer"), who is a high-level, trustworthy employee. The Directors of the Company have appointed Kathleen M. Claybrook to serve as Compliance Officer of the Company. However, compliance is ultimately the responsibility of all of the Company Colleagues."

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2.

The compliance program supersedes any conflicts that may occur with the company's other policies.

A.

True
B.

False

Correct Answer
A. True

Explanation
"The Company has also adopted an employee handbook (“Employee Handbook”) and other policies to govern the operations of the Company. This Compliance Program does not conflict with these other policies and should operate in conjunction with them. Where a conflict between this Compliance Program and other policies may inadvertently occur, this Compliance Program shall supersede."

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3.

Which of the following is not a compliance standard in the code of conduct?

A.

The Company shall abide by all environmental regulations and strive to be an active member of society in the conservation of the environment.
B.

The Company shall strive to be a good corporate citizen and a socially responsible firm in the communities in which it operates.
C.

The Company shall only purchase goods and services from the state of Alabama
D.

The Company shall not use advertising which is deceptive or misleading, and shall use evidence to support all specific claims about the quality of goods and services.

Correct Answer
C. The Company shall only purchase goods and services from the state of Alabama

4.

You may accept a sizable gift from a potential participant to allow them into the program.

A.

True
B.

False

Correct Answer
B. False

Explanation
"The Company Colleagues shall not seek or accept for themselves or others any gifts, favors, entertainment, payments without a legitimate business purpose, (nor shall they seek or accept personal loans other than conventional loans at market rates from lending institutions) from any persons or business organizations that do or seek to do business with the Company or are a competitor"

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5.

What is the reporting policy?

A.

All employees and board members are expected to comply with the standards and report any violation promptly. The person in question is allowed to confront the individual who reports the violation against them.
B.

All employees and board members are expected to comply with the standards and report any violation promptly. The individual can not be retaliated against if he or she reports the violation properly.
C.

All employees and board members are expected to comply with the standards and violations must be reported within one year to be considered valid.
D.

None of the above

Correct Answer
B. All employees and board members are expected to comply with the standards and report any violation promptly. The individual can not be retaliated against if he or she reports the violation properly.

Explanation
"1. All employees and Board Members are expected to comply with the foregoing standards and are expected to report promptly any violation by anyone. 2. Though this Policy does not otherwise alter any employee's status as an employee at will, it is a violation of this Policy for anyone to retaliate against anyone who honestly and properly reports a violation of the foregoing standards."

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6.

Check all of the following that would constitute a conflict of interest

A.

Hiring an unqualified relative to provide necessary services for the company
B.

Failing to disclose that you’re related to a job candidate the company is considering hiring
C.

Making a purchase or business choice to boost a business that you have a stake in
D.

Promoting the company or organization by inviting friends and colleagues to fundraisers
E.

Starting a company that provides services similar to your full time employer.

Correct Answer(s)
A. Hiring an unqualified relative to provide necessary services for the company
B. Failing to disclose that you’re related to a job candidate the company is considering hiring
C. Making a purchase or business choice to boost a business that you have a stake in
E. Starting a company that provides services similar to your full time employer.

Explanation
The answer is correct because all of the listed actions would constitute a conflict of interest. Hiring an unqualified relative to provide necessary services for the company is a conflict because it prioritizes personal relationships over the company's best interests. Failing to disclose a relationship with a job candidate being considered for hiring can lead to biased decision-making. Making a purchase or business choice to benefit a business that you have a stake in is a clear conflict of interest as it undermines fair competition. Starting a company that provides similar services to your full-time employer can create a conflict by competing with your employer.

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7.

Which of the following is not an appropriate method to report possible violations?

A.

In writing by using the Report of Suspected Violation(s) form, a copy of which is attached hereto as Appendix C. The completed Report may be placed in a designated drop-box or provided to the Compliance Officer or supervisor by other means
B.

Orally to a supervisor, officer, Director, or the Compliance Officer
C.

By informing a fellow board member or employee and asking them to relay the information to the Compliance Officer
D.

By calling the Compliance Officer directly
E.

By e-mailing the Compliance Officer or a Director, officer or supervisor

Correct Answer
C. By informing a fellow board member or employee and asking them to relay the information to the Compliance Officer

Explanation
The given answer is not an appropriate method to report possible violations because it involves relaying the information through a third party. This method may result in miscommunication or delay in reporting the violation, which could hinder the prompt investigation and resolution of the issue. It is more effective to report the violation directly to the Compliance Officer or a supervisor through one of the other provided methods such as in writing, orally, by calling, or by emailing.

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8.

The misuse, unauthorized access to, or mishandling of confidential information is strictly prohibited. Which of the following constitutes confidential information?

A.

Salary
B.

Benefits
C.

Trade secrets
D.

Personal employee information
E.

The company's mission statement

Correct Answer(s)
A. Salary
B. Benefits
C. Trade secrets
D. Personal employee information

Explanation
Confidential information refers to sensitive data that should be kept private and not disclosed to unauthorized individuals. In the given options, salary, benefits, trade secrets, and personal employee information all fall under the category of confidential information. Salary and benefits are private details related to an employee's compensation package, trade secrets are valuable proprietary information of a company, personal employee information includes private data such as social security numbers or medical records, and the company's mission statement may also be considered confidential as it represents the organization's strategic goals and direction.

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9.

Completing this training is required annually and a condition of employment.

A.

True
B.

False

Correct Answer
A. True

Explanation
We shall provide or arrange for at least one (1) hour of annual training and education on this Compliance Program for all of the Company Colleagues. Attendance and participation at training programs is a condition of employment and failure to comply with training requirements could result in disciplinary action.

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