WorksheetsFP II 1.02 Test
Total questions: 10
Worksheet time: 50mins
Because Maggie's primary goal is to get ahead in the company, she often uses questionable tactics to get a sale, which sometimes involves misleading her customers. Maggie's behavior is a risk to her employer because Maggie places more importance on personal gain than she does on:
business ethics
her productivity
social responsibility
operating procedures
Which is an unethical activity that relates to risk management?
issuing bonds to raise funds for a corporation
withholding information from insurance underwriters
requesting various documents to process a loan request
using third-party debt collectors to obtain overdue payments
Which is a potential negative consequence for a business which fails to manage risk by implementing an ethics training program for all employees?
Increased conflict
damaged reputation
reduced profit margins
decincreased salary expense
Without ethical standards, risk management activities can sometimes occur:
rarely
illegally
at the expense of other people
without a strong leader in place
A health food company claims that its products will cure many diseases, but without proof of this claim. When customers realized that the claim was unfounded, the company suffered from a damaged reputation and many lawsuits. The company's behavior is considered to be:
favorable
Moral
normal
unethical
Michelle has acquired proof that her coworker Ted has been embezzling money from the company. If Michelle fails to inform her employer about Ted's activities, what will likely occur?
Ted will be charged with a felony
The company financial risk will increase
The company's property insurance premium will increase
The government will fine the company for non complaiance
Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. Emma is using financial information in this situation to:
identify external economic trends.
analyze the impact of aging accounts.
establish new quality standards and benchmarks.
compare estimated performance with actual performance.
One goal of risk management is to
limit losses
increase expenses
increase employee loyalty
determine right from wrong
To guard against intentional ethical violations, such as deliberate financial data tampering, an organization should maintain:
daily balance sheets
audit trails of data changes
hard copies of all documents
an accounts receivable schedule
To save money, an automobile manufacturer imported substandard parts resulting in engine fires. The manufacturer is now facing a class-action lawsuit which is an example of a risk associated with:
trade secrets
service quality
product safety
domestic trade
