The Corporate World with Governance, Ethics and Internal Control

Name: SHYRA N GALLEPOSO

Class Schedule: BSA 2

Assessment

I. Multiple Choice

Directions: Read and analyze each item. Encircle the letter of the correct answer. You
may also view this exam on google class. Submit your work in the pigeon boxes which
are provided in your department/college, or to google class on or before the date as
reflected in your study schedule.

1. The following are the principles of personal ethics, except

A. Basic Justice, fairness B. Concern for the right of others
C. Compliance with the law D. Confidentiality

2. All the recognized professions have several common characteristics and this include
the following, except
A. A need for private confidence B. A responsibility to serve the public

C. A complex body of knowledge D. Standards of admission to the profession

3. Among are the included in business ethics, except

A. Fair competition B. Social responsibility
C. Concern for environment D. Professional behavior

4. The following are the primary reason why people act unethically, except
A. The person chooses to act selfishly
B. The person’s ethical standards are similar from those of society as a
whole
C. The person’s ethical standards are different from those of society as a
whole
D. None of the above

5. Among are the characteristics and values associated with ethical behavior, except
A. Accountability B. Honesty C. Confidentiality D. Integrity E. None of
these

6. Examples of direct misrepresentation about the product include the following except
A. False advertising B. Deceptive packaging
C. Mislabeling D. Caveat emptor

7. Examples of indirect misrepresentation about the product include the following

except
A. Caveat emptor B. Deliberate withholding adverse information
C. Business ignorance D. False advertising

8. Examples of direct misrepresentation about the product include the following except

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The Corporate World with Governance, Ethics and Internal Control

A. Adulteration B. Short merging

C. Short measurement D. Over persuasion

9. Interlocking directorship can be committed by

A. Rank and file employees B. Members of the board of directors

C. Top executive officers D. Middle-level managers

10. The following constitute unfair labor practices of an employer except

A. To restrain employees to form a union
B. To violate a collective bargain or agreement
C. To discriminate with regard to wages, hours of work
D. To terminate employment of employees found to have violated
company policy or employment contract

11. The following are examples of unethical practices of employer except

A. Acceptance of gifts from a customer in exchange for a favor that is
detrimental to its interest of his employer
B. Engagement in the same type of business as his employer
C. Disclosure of confidential company information to someone else for
personal gain
D. Application for a loan from his employer to settle personal liabilities

12. The following are examples of dishonest acts of an employee toward his employer
except
A. Working overtime upon instruction of his supervisor
B. Bringing home office supplies for personal use
C. Overstating business trip expense by submitting false receipts
D. Dong personal errands during office hours.

13. The following are examples of conflict of interest, except

A. The employee discloses or uses confidential information for his or someone
else’s personal gain
B. The employee engages another type of business as his employer.
C. The employee uses for his own benefit a business opportunity in which his
employer has or might be expected to have an interest
D. An employee holds significant interest or shares of stock of a supplier which
prejudice his employer

14. The following are the unethical practices of the board of directors, except
A. Plain Graft B. Outsider Trading
C. Interlocking Directorship D. Negligence of duty

15. Among are the unethical practices of executive officers and lower-level management,
except
A. Claiming a vacation trip to be a business trip.
B. Unfair labor practices
C. Ineffective controls

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The Corporate World with Governance, Ethics and Internal Control

D. Having employees do work related to the business

16. Top management's commitment in the "Unified Code of Conduct for Business"
included the following, except
A. To lead by example in conducting business with integrity.
B. To communicate within the company and the general public the company's
position against bribery, corruption and unethical business practice,
C. To institute training programs or business ethics covering all levels of
the organization.
D. To support strategy integrity practices and efforts and allocate sufficient
resources for their implementation.

17. Among the commitments of the "Finance and Accounting Section of an organization"
is.
A. To pay taxes in compliance with all laws
B. To have appropriate tools to receive, monitor and act on internal and
external complaints of employees.
C. To communicate rules and guidelines or giving gifts, entertainment tokens of
hospitality and contributes to / from public or private organizations.
D. To prohibit contracting a third party to bribe or commit corrupt practices in
behalf of the company.

18. In the "Unified Code of Conduct for Business" the logistics department commits to do
the following, except
A. Not to penalize employees for refusing to pay bribes or facilitation payments
even if it results in failure to meet deadlines or revenue is lost.
B. Not to tolerate any breaches or violation of existing laws in exchange for
undue advantage and unethical concessions a favor.
C. To pay correct duties and taxes based on transparent assessment of goods
and services.
D. To protect employees from retaliation when complaints are failed
against them.

19. In the “Unified Code of Conduct for Business” the human resources department
commit to do the following, except
A. Employees filing complaints will be protected from all types of retaliation
B. Have instituted training programs on business ethics covering only
the top levels of organization.
C. To have appropriate tools to confidentially receive, monitor, and act on
internal and external complaints.
D. In the spirit of fairness and due process, all employees have the right to file
and respond to complaint against practices suspected to be illegal or
unethical.

20. A code of conduct is a formal expression of the organization’s value and ethics that
includes the following, except
A. To ensure compliance with legal and other obligations to legitimate
stakeholders.

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The Corporate World with Governance, Ethics and Internal Control

B. To promote responsibility and accountability of individuals for reporting and

investigating reports of unethical practices; and
C. To guide directors and senior executives as to the practices necessary to
maintain confidence in the organization's integrity.
D. Other members of staff should also have a code of conduct relevant
to them which may be not the same as that for directors and senior
executives or may be not complementary version,

II. True or False

Directions: Read the following sentences. Write the letter “T” if the statement is True
and “F” if the statement is False. Write your answer on the space before the number.
You may also view this test at our google class.

__T____1. A considerable portion of the ethical values of a society cannot be

incorporated into laws because of the judgmental nature of certain vIT
T__2. To understand the importance of a Code of Ethics for professionals, one must
understand the nature of a profession as opposed to other vacation.

___T___3. Company operations influence employees, customers, suppliers and

competitors, while business decisions affect communities, governments and the
environment.

_F4. Fairness and closeness are one of the characteristics and values associated with
ethical behavior

____T__5. The need for ethics in society is sufficiently important that may need
commonly held ethical values are incorporated into laws.

____T__6. Manager is expected to act in the best interest of the business, he can be
expected to act in a manner that is not contrary to the law or to his conscience.

__F____7. A manager should cooperate with his colleagues and to attempt to secure
personal advantage at their expense.

_____F_8. Business ethics is an area of corporate responsibility where businesses are

legally bound and socially obligated to conduct business in an unethical manner.

_____T_9. One of the specific purposes of business ethics is to assist the business
world in formulating codes of conduct which can be used as a guide in formulating
business plans and strategies and in making business decisions.

theT___10. Since individual values differ, what is ethical or unethical in making profit
also varies from person to person.

_____T_11. A manager indirectly betrays trust placed on him by higher executive

officers if the administrative and accounting controls in his office are so weak or effective
that employees are given the opportunity to misappropriate funds or engage in petty
thievery.

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The Corporate World with Governance, Ethics and Internal Control

____F__12. Caveat emptor is direct misrepresentation and unethical because a seller is

a witness for the goods he is selling.

____T__13. Executive officer and lower managers ask company employees to do

personal thing for them on company time is unethical.

____T__14. The employee uses or discloses confidential company information for his or
someone else's personal gain is an example of conflicts of interest.

_____T_15. Insider trading occurs when a broker or another person with access to
confidential information uses that information to trade in shares and securities of a
corporation, thus giving him a fair advantage over the other purchasers of these
securitbTusiness

T___16. The Ant-Money Laundering Act criminalizes money laundering and organized
crime.

_____T_17. Corruptions spread when there are opportunities, when risk is minimal in
comparison to benefits obtained

______T18. Having defined workflows, clear directives on financial approving

authorities, and standard procurement instructions can help flag irregularities in a
business or organization.

_____F_19. Conflict of interest occurs when a business interest or relationships is

placed before the personal interest,

__T____20. Corruption is the abuse of private and public office for personal gain. It
includes acts of bribery, embezzlement, nepotism, kickbacks and state capture

____T__21. Corruption causes businesses to flee from the country because

businessmen find it a constant threat for their progress.

_____T_22. Major corruption arises whenever major events involving large sums of
money multiple parties or huge quantities or products are at stake.

___T___23. The Anti-Graph and Corrupt Practices Act criminalizes active and passive
bribery, embezzlement, extortion, abuse of office and conflict of interest in the public
sector.

____F__24. Corruption leads to waste or the efficient use of public resources.

____F__25. Corruption creates unfair competition and decreases the cost of doing
business. Every form of corruption is bad for economic growth and could result to
tarnished reputation of an entire country.

III. Identification

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The Corporate World with Governance, Ethics and Internal Control

Directions: Identify the following questions and write your answer on the blank provided.
You may also view this exam on google class. Submit your work in the pigeon boxes
which are provided in your department/college, or to google class on or before the date
as reflected in your study schedule.

__________1. It means achieving success solely by offering better products, services

and terms that the competitors.
- Fair Competition

__________2. Refers to standards of moral conduct, behavior and judgment in

business. It involves making the moral and right decisions while engage in such
business activities as manufacturing and selling a product and providing a service to
customers.
-Business Ethics

__________3. It is a form of business competition where success is gained by the merits

of one's goods and services.
- Fair Competition

__________4. An area of corporate responsibility where businesses are legally bound

and socially obligated to conduct business in an ethical manner.
- Business Ethics

__________5. Refers to a key area of business influence on society.

- Corporate Values
__________6. The process of appealing to the emotions of a prospective customer and
urging him to buy an item of merchandise he needs.
- Over persuasion

__________7. It arises when an employee who is duty bound to protect and promote the
interests of his employer violates this obligation by getting himself into a situation where
his decision or actuation is influenced by what he can gain personally from it rather than
what his employer can gain from it.
- Conflict of interest

__________8. It happens when this person is compelled to decide which of the two
corporation’s interest should be protected or upheld.
- Interlocking Directorship

__________9. Refers to unethical practice of debasing a pure or genuine commodity by

imitating or counterfeiting it,
- Adulteration

__________10. Characterized by actively misrepresenting about the product or

customers.
- Direct Misrepresentation
__________11. It means “let the buyer beware”.
- Caveat emptor

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The Corporate World with Governance, Ethics and Internal Control

__________12. It is a passive deception because the businessman is unable to provide

the customer with the complete information that the latter needs to make a fair decision.
- Business ignorance

__________13. Often practiced by a person who holds directorial positions in two or

more corporation that do business with each other
- Interlocking Directorship

__________14. The practice of making false statements on the label of a product or

making its container similar to a well-known product for the purpose of deceiving the
customer as to the quality and/or quantity of a product being sold.
- Mislabeling

__________15. This unethical practice is found in selling situations where the price of
the product depends on its length such as selling cloths or textile, electric cords or wires
or on its volume such as selling rice by the sack.
- Short measurements

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now ready to take Unit 3.

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