Ethics in Finance & Accounting Professions Dr. Hamdino Hamdan Course Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main function of professional ethics?

To guide behavior in a business environment (correct)

To regulate personal conduct in daily life

To define organizational standards

To dictate personal values

How are professional ethics different from values?

Professional ethics focus on relationships with employees, while values focus on relationships with employers

Professional ethics are codified as a set of rules, while values are unique to each person (correct)

Professional ethics are flexible, while values are rigid

Professional ethics cover only personal standards, while values cover organizational standards

What is the primary purpose of a code of ethics?

To regulate personal behavior outside of work

To establish uniform personal values

To promote individualism and independence

To provide guidelines for professional conduct (correct)

What do professional ethics encompass?

Personal, organizational & corporate standards Signup and view all the answers

How do professional ethics differ from personal ethics?

Professional ethics cover only behavior in a business environment, while personal ethics cover all aspects of life Signup and view all the answers

What is the primary difference between personal ethics and professional ethics?

Personal ethics apply to everyday life, while professional ethics apply to work environment Signup and view all the answers

In what scenario might personal and professional ethics clash according to the text?

When a doctor disagrees with the chosen medical treatment of a patient but is required to respect the patient's autonomy under the Code of Ethics for the Medical Association Signup and view all the answers

What is the purpose of codes of professional ethics as stated in the text?

To guide professionals in maintaining client relationships and preserving the integrity of the applicable profession Signup and view all the answers

What is expected of a professional in terms of expertise, according to the text?

To be competent and skillful in their field Signup and view all the answers

What is the main responsibility of an accountant as a professional, according to the text?

Recognizing a responsibility to the public, client, and fellow practitioners including honorable behavior Signup and view all the answers

What is the primary focus of corporate governance theories?

Balancing the interests of stakeholders Signup and view all the answers

Which theory emphasizes the role of management as stewards who act in the best interest of the shareholders?

Stewardship theory Signup and view all the answers

According to agency theory, what is a potential issue when managers pursue their own interests over the shareholders' interests?

Principal-agent conflict Signup and view all the answers

Which theory focuses on the relationships between an organization and its external environment, such as suppliers and creditors?

Resource dependence theory Signup and view all the answers

In the context of corporate governance, which theory emphasizes the broader impact of business decisions on society?

Stakeholder theory Signup and view all the answers

According to resource dependence theory, what can organizations do to reduce their vulnerability to external resource providers?

Diversify resource sources Signup and view all the answers

Which theory emphasizes the need for clear, transparent communication and collaboration between an organization and its various stakeholders?

Stakeholder theory Signup and view all the answers

How does stewardship theory differ from agency theory regarding the behavior of managers?

Managers act in their own interest in stewardship theory, but as agents for shareholders in agency theory. Signup and view all the answers

Which factor is NOT central to resource dependence theory?

The role of managers as stewards of shareholder interests Signup and view all the answers

What is a key focus of agency theory in relation to the principal-agent relationship?

Aligning the incentives of managers with those of shareholders Signup and view all the answers

In what way does stakeholder theory differ from stewardship theory?

Stakeholder theory emphasizes considering societal impacts, while stewardship theory focuses on maximizing shareholder wealth. Signup and view all the answers

What is a potential implication of minimizing resource dependence according to resource dependence theory?

Increased reliance on external entities like suppliers and creditors Signup and view all the answers

Study Notes

Professional Ethics

The main function of professional ethics is to provide guidelines for behavior and decision-making in a professional context.
Professional ethics differ from values in that they are specific to a profession and are based on the values and principles of that profession.
The primary purpose of a code of ethics is to establish standards of conduct and behavior for professionals in a particular field.

Personal vs. Professional Ethics

Professional ethics encompass the rules, norms, and standards that guide a professional's behavior and decision-making.
Professional ethics differ from personal ethics in that they are specific to a profession and are based on the values and principles of that profession.
The primary difference between personal ethics and professional ethics is that personal ethics are individual and subjective, while professional ethics are external and based on the profession.

Code of Ethics

The purpose of codes of professional ethics is to provide guidelines for behavior and decision-making in a professional context.
Codes of ethics outline the expectations for professional behavior and decision-making.

Expertise and Responsibility

Professionals are expected to have a high level of expertise in their field and to stay up-to-date with developments in their profession.
The main responsibility of an accountant as a professional is to provide accurate and unbiased financial information.

Corporate Governance Theories

Agency Theory

Emphasizes the principal-agent relationship, where managers (agents) act on behalf of shareholders (principals).
A potential issue arises when managers pursue their own interests over the shareholders' interests.

Stewardship Theory

Emphasizes the role of management as stewards who act in the best interest of the shareholders.
Differ from agency theory in that managers are seen as stewards rather than agents.

Resource Dependence Theory

Focuses on the relationships between an organization and its external environment, such as suppliers and creditors.
Organizations can reduce their vulnerability to external resource providers by diversifying their resources or building relationships with multiple providers.

Stakeholder Theory

Emphasizes the broader impact of business decisions on society.
Differs from stewardship theory in that it considers the interests of all stakeholders, not just shareholders.

Communication and Collaboration

The purpose of stakeholder theory is to facilitate clear, transparent communication and collaboration between an organization and its various stakeholders.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on the ethics in finance and accounting professions with this quiz based on the learning outcomes provided by Dr. Hamdino Hamdan. Topics include professional ethics, types and purposes of code of ethics, and the differences between personal ethics and professional ethics.

Ethics in Finance &amp; Accounting Professions Dr. Hamdino Hamdan Course Quiz

Choose a study mode