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Questions and Answers
What is ethics?
What is ethics?
Ethics refers to the principles that govern a person's or group's behavior regarding what is right and wrong.
Define fraud.
Define fraud.
Fraud is the crime of lying and deceiving for personal gain.
What is embezzlement?
What is embezzlement?
Embezzlement is a type of accounting fraud where funds are misappropriated.
What is insider trading?
What is insider trading?
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Which of the following is NOT a type of unethical behavior?
Which of the following is NOT a type of unethical behavior?
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Forgery is a form of fraud that involves passing bad checks.
Forgery is a form of fraud that involves passing bad checks.
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What are some consequences of environmental violations?
What are some consequences of environmental violations?
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How can companies protect themselves from con artists?
How can companies protect themselves from con artists?
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Blank ______ is a non-hiring practice based on irrelevant factors.
Blank ______ is a non-hiring practice based on irrelevant factors.
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Which famous scandal is known for accounting fraud?
Which famous scandal is known for accounting fraud?
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Misuse of funds refers to the proper allocation of financial resources.
Misuse of funds refers to the proper allocation of financial resources.
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Study Notes
Business Ethics
- A code of ethics is a document outlining appropriate employee behavior in specific situations.
- Ethical behavior in a business is essential to build trust and maintain a positive reputation.
Types of Unethical Behaviour
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Fraud is deceiving for personal gain.
- Forgery is a specific type of fraud involving passing a fake cheque.
- Theft is stealing someone's property, including scenarios like employer theft where employees are not fairly compensated.
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Embezzlement is accounting fraud where individuals misuse funds for personal gain.
- Auditors examine business accounts to prevent embezzlement.
- The Enron Scandal is a famous example of accounting fraud where the company lied about its profits, ultimately leading to bankruptcy.
- Misuse of funds involves moving funds without permission or direction.
- Discrimination is refusing to hire someone based on factors unrelated to their job performance (race, religion, gender, disability).
- Environmental violations occur when businesses disregard laws and regulations concerning toxic waste.
- Concealing information involves withholding crucial information, such as details about defective products.
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Insider trading is buying or selling shares based on confidential information about a company.
- Insider trading is harder to detect compared to fraud or embezzlement.
- Martha Stewart was convicted for insider trading related to ImClone shares, resulting in a five-month prison sentence.
Catch Me If You Can
- This movie showcases the story of Frank Abagnale, who committed fraud by writing bad checks totaling $2.5 million across 26 countries.
- At just 16 years old, he used his skills to impersonate a doctor, lawyer, and airline pilot.
- The movie raises questions about business practices related to verifying and handling bad checks.
- It underlines the importance of employee alertness and awareness in detecting potential con artists.
- Companies must implement measures to protect themselves from fraudulent activities like those depicted in "Catch Me If You Can."
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Description
Explore the critical concepts of business ethics and various forms of unethical behavior that can occur in the workplace. From fraud and embezzlement to discrimination and the importance of maintaining a code of ethics, this quiz covers essential elements to ensure a trustworthy and positive business environment.
