Financial Ethics

7 Questions | Total Attempts: 135

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Financial Management Quizzes & Trivia

Financial ethics are often overlooked. That is unfortunate on many levels.


Questions and Answers
  • 1. 
    Behaving ethically can _____
    • A. 

      Lower likelihood of lawsuits and criminal charges

    • B. 

      Reduce transaction costs

    • C. 

      Lead to higher market values

    • D. 

      All of the above

  • 2. 
    Which of the following is true?
    • A. 

      Holding other things constant, ethical firms should have a higher price to book value.

    • B. 

      Shareholder interests are solely dependent of short run cash flow maximization.

    • C. 

      Nice firms finish last more often than not.

    • D. 

      Buyer beware is all the ethics you will ever need.

  • 3. 
    According to the CFA guidelines, which of the following is NOT ethical
    • A. 

      Putting your own interests before the client

    • B. 

      Increasing transparency

    • C. 

      Encouraging a reduction in conflicts of interest through better systems.

    • D. 

      Continual learning and improvement for all knowledge workers.

  • 4. 
    A problem with trying to teach ethical behavior in business classes is
    • A. 

      What is ethical to one person, may be unethical to another

    • B. 

      Students often find it difficult to see themselves doing anything unethical

    • C. 

      Ethics often seen as something better left for liberal arts and religion classes

    • D. 

      All of the above

  • 5. 
    Ethical systems (better examples and reduced systemic conflicts) have been shown to reduce unethical behavior
    • A. 

      True

    • B. 

      False

  • 6. 
    Which of the video speakers in the helpified tool-set focuses more on the legal reasons for being ethical?D
    • A. 

      Dr. Julius Coles

    • B. 

      Frank Buccaro (importance of Ethics in Business)

    • C. 

      Dr. Freeman of the Darden school

    • D. 

      Michael Jensen

  • 7. 
    "Thou shall nots" are seen as
    • A. 

      Negative ethics

    • B. 

      Normative ethics

    • C. 

      Positive ethics

    • D. 

      The best way to deal with ethics as there are no conflicts