Ethics Approaches Quiz

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Questions and Answers

Which approach to ethics focuses on maximizing benefits for the majority, as demonstrated by G's decision to proceed with building the factory?

Pluralist

Utilitarian (correct)

Absolutist

Egoist

What type of unemployment is likely to increase during a period of economic contraction in Country Z?

Frictional

Cyclical (correct)

Real wage

Structural

Which of the following accurately defines blockchain technology?

A technology that allows people who do not know each other to trust a shared record of events (correct)

A sequence of transactions facilitated by the internet

A supply chain management system used to improve efficiency

A centralised, undistributed and private digital ledger that is used to record transactions

Which of the following is NOT typically considered a key component of the '4P's' in the marketing mix?

People Signup and view all the answers

Which two activities are common types of internal control within an organization?

Monitoring of controls Signup and view all the answers

Is the statement 'Teeming and lading is a fraudulent investment offer that involves paying abnormally high returns to initial investors out of the new money paid in by subsequent investors' true or false?

True Signup and view all the answers

What aspect of corporate social responsibility (CSR) relates to the long-term maintenance of environmental, social, and economic systems?

Sustainability Signup and view all the answers

Which of the following is a consequence of a company prioritizing profits over corporate social responsibility (CSR)?

Increased regulatory scrutiny Signup and view all the answers

Which ethical principle has Charlotte violated by using misleading figures in a press release?

Integrity Signup and view all the answers

According to Mendelow's matrix, what strategy should JM Co adopt regarding the national government?

Keep satisfied Signup and view all the answers

Which action should be taken first by an ACCA qualified accountant feeling pressured to act unethically?

Report to a senior manager in charge of ethics Signup and view all the answers

What is NOT a characteristic feature of committees?

Decisions tend to be made rapidly Signup and view all the answers

Which of the following is essential for effective corporate social responsibility?

Stakeholder engagement Signup and view all the answers

In the context of corporate governance, which approach emphasizes the fair treatment of all stakeholders?

Stakeholder theory Signup and view all the answers

Which ethical principle generally addresses the importance of fairness and impartiality in professional judgments?

Objectivity Signup and view all the answers

Which of the following is typically an expected outcome of implementing robust corporate social responsibility strategies?

Enhanced company reputation Signup and view all the answers

What does a price elasticity of demand of 0.5 indicate about the product?

Demand is inelastic. Signup and view all the answers

Which of the following statements is true regarding the necessity classification of a product?

Necessity goods are less affected by price changes. Signup and view all the answers

What is one role of internal audit in an organization?

To assess and improve internal controls. Signup and view all the answers

If internal auditors can determine the scope of their own work, what does this imply?

They have the autonomy to assess risks as they see fit. Signup and view all the answers

What conflict management approach allows team members to work through their differences collaboratively?

Resolution Signup and view all the answers

What type of ethical threat is present if an accountant advocates for their client while being personally invested in the company's success?

Advocacy threat Signup and view all the answers

In the case of limited resources, which conflict management strategy could be considered inappropriate?

Collaboration Signup and view all the answers

What is one characteristic of a product likely to have a large number of substitutes?

It is considered a luxury good. Signup and view all the answers

Study Notes

Ethics in Decision Making

G supports factory construction for profitability, job creation, and economic benefits, demonstrating Utilitarian ethics, which focuses on the greatest good for the largest number.

Unemployment Context

Country Z faces economic contraction, likely leading to cyclical unemployment due to reduced demand for goods and services.

Blockchain Definition

Blockchain is defined as a technology that enables trust in a shared record of events among parties that do not know each other, emphasizing its decentralized nature.

Internal Control Activities

Common internal control activities include:
- Monitoring of controls
- Authorisation and approval

Marketing Mix

The '4P’s' segment of the marketing mix does not include People, which refers to internal marketing aspects rather than the traditional four components (Product, Price, Place, Promotion).

Fraudulent Investment

Teeming and lading is a fraudulent scheme where returns to early investors are paid from the funds of new investors; this statement is True.

Sustainability in CSR may involve:
- Preventative actions
- Risk assessment processes

Ethical Principle Breach

Charlotte misusing figures in her press release likely breaches the IFAC principle of Integrity, which emphasizes honesty and fairness.

Stakeholder Analysis Strategy

JM Co's stakeholder analysis suggests a strategic response of Minimal effort regarding the national government, who possesses power but shows little interest.

Actions for Ethical Dilemmas

In facing unethical requests, an accountant should:
- Report to a senior manager in charge of ethics
- Contact the ACCA
- Resign from the post if necessary.

Committee Decision-Making Features

A common feature of committees includes the tendency for decisions to be compromises rather than the optimal solution.

Human Resource Management Statement

The statement regarding human resource management being part of Porter’s value chain is True.

Price Elasticity of Demand

A 5% price increase leading to a 10% reduction in sales indicates a price elasticity of demand of 0.5, classifying the product as inelastic.

Internal Audit Functions

Correct statements about internal audit:
- It's a legal requirement for certain companies.
- Its role is to assess sound internal controls.
Incorrect statements include the notion that internal auditors determine the scope of their work and whether it makes recommendations to managers.

Conflict Management Approaches

Julie should use the Resolution approach to address the ongoing conflict between Ava and Michael regarding the delivery van.

Ethical Threats in Accounting

Emma is facing a self-interest threat, as her past actions to attract investors contradict her knowledge of GHF Co's poor performance.

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Description

This quiz assesses your understanding of different ethical approaches demonstrated in various scenarios. By evaluating the decisions made by individuals like G, you'll identify whether their reasoning aligns with egoism, utilitarianism, pluralism, or absolutism. Test your knowledge on the principles of ethical reasoning!