Values Clarification Quiz

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Which of the following is NOT considered a core value in the securities industry?

Integrity

Honesty

Competitiveness (correct)

Trust

What could be compromised if an RR lacks integrity, trust, honesty, or competency?

The reputation of the industry only

The integrity of the RR only

The reputation of the RR only

The reputation of the RR and the industry (correct)

What makes it difficult to define the meaning of a particular value according to the text?

Different interpretations of values by different people (correct)

Lack of understanding of values by individuals

The ever-changing nature of values

Lack of importance of values in society

What is critically important for individuals and companies according to the text?

Understanding personal values Signup and view all the answers

What is the process of becoming aware of the values that drive your day-to-day decisions and behaviour?

Values clarification Signup and view all the answers

What are end values in the context of personal goals?

Values that define personal goals Signup and view all the answers

Which type of value system is one in which end values and means values mutually reinforce and support each other?

Unified value system A Signup and view all the answers

Why do people and corporations get into trouble according to the text?

When unconscious drives overpower values Signup and view all the answers

What is the main focus of ethical managers according to the text?

Creating client and firm profit through ethical actions Signup and view all the answers

Why is it important for a company to articulate new sets of ethically tuned standards?

To create a corporate norm of good behavior Signup and view all the answers

What does Wealth Makers Securities Inc. (WMS) expect from its RRs?

Maintaining high levels of productivity regardless of circumstances Signup and view all the answers

What is the result of ethically tuned employees doing the right thing for fear of punishment?

The same result as if they did it out of respect for authority Signup and view all the answers

What is the main focus of laws?

Setting standards of allowable behavior Signup and view all the answers

What is the primary concern of ethics?

Interpersonal relationships and societal benefit Signup and view all the answers

Why is it important to have a strong code of ethics?

To prevent strictly legal but highly unethical behavior Signup and view all the answers

What is a common example of the legal-versus-ethical dilemma?

Minority shareholder rights Signup and view all the answers

What role do ethics play in the securities industry, according to the text?

Providing a foundation for a comprehensive set of rules Signup and view all the answers

Why is it important to have an effective ethics program in the securities industry?

To create a strong corporate culture Signup and view all the answers

What do ethics represent, as defined in the text?

A set of values and standards guiding individual behavior Signup and view all the answers

What should individuals strive to maintain and improve in the context of professional conduct?

Their professional knowledge Signup and view all the answers

How are laws related to society's overall ethical sensibility?

Laws are based on values held by society Signup and view all the answers

What informs our life goals and influences the decisions we make according to the text?

Cultural measures of worth Signup and view all the answers

How is our personal ethical stance built according to the text?

Built on cultural values Signup and view all the answers

What is the benefit of an explicit values statement according to the text?

Providing a sense of stability and continuity in a rapidly changing environment Signup and view all the answers

What is the primary purpose of having a well-thought-out philosophy with a set of core beliefs?

To provide direction and meaning to life Signup and view all the answers

How does knowing one's core values benefit individuals according to the text?

It allows individuals to hold them consciously in place as they make daily decisions Signup and view all the answers

What is the next step if you determine that there is only one right choice in an ethical dilemma?

Stop the process and take the correct action Signup and view all the answers

In Murray's case, what kind of dilemma did he identify?

Truth vs loyalty Signup and view all the answers

What type of relationship does Murray have with the day traders?

Casual contact when markets are performing well Signup and view all the answers

What should you do if you determine that you are facing an ethical dilemma?

Move on to the next step Signup and view all the answers

What is the primary ethical dilemma that Murray is facing?

Meeting WMS's high productivity requirement by keeping only his top 90 clients Signup and view all the answers

What might be a consequence if Murray closes out the small accounts of major clients' teenaged children?

The parents would be offended and close out their own accounts Signup and view all the answers

What is a key concern for Murray regarding maintaining a relationship with his elderly clients?

They are unlikely to find another advisor to care for their accounts Signup and view all the answers

What is a potential consequence of maintaining a relationship with the day traders with relatively dormant accounts?

Losing focus on maintaining relationships with other key clients Signup and view all the answers

What are the three tests that can be used to determine whether you are dealing with a right-versus-wrong issue?

The legal test, the front page test, and the Mom test Signup and view all the answers

What is the third step in the ethical decision-making process?

Gather the facts Signup and view all the answers

What is Murray's responsibility in the given situation?

To gather the facts and make the decision Signup and view all the answers

What should individuals subject each choice to, given a set of choices, before proceeding?

The legal test, the front page test, and 3.the Mom test Signup and view all the answers

What type of dilemma does Murray's conflict with his elderly clients represent?

Justice-versus-mercy dilemma Signup and view all the answers

Which dilemma demands a cost-benefit analysis to determine the greatest good for the greatest number of people?

End-based ethical thinking Signup and view all the answers

What is the sensible short-term choice for Murray according to the text?

Concentrate on his wealthy clients Signup and view all the answers

Which group of clients does Murray consider letting go because they do not fit the new criteria?

Elderly clients Signup and view all the answers

What should be the next step if it is determined that there is only one right choice in an ethical dilemma?

Stop the process and take the correct action immediately Signup and view all the answers

What does Murray's dilemma with his elderly clients illustrate?

A truth-versus-loyalty dilemma Signup and view all the answers

What is the purpose of asking the question 'Is this an individual-versus-group dilemma?'

To identify whether there is a conflict between individual and collective interests Signup and view all the answers

When is it necessary to determine whether an ethical dilemma is a right-versus-wrong issue or a right-versus-right issue?

If there are conflicting core values at play Signup and view all the answers

Which concept can be specifically defined as the study of the general nature of morals and the moral choices made by individuals?

Ethics as a concept Signup and view all the answers

What is the primary reason that people may follow rules without believing it is the right or moral thing to do?

They must do so Signup and view all the answers

Why can it be possible to act unethically even when complying strictly with the rules?

Rules cannot encompass every possible situation Signup and view all the answers

What distinguishes moral principles from ethics according to the text?

Moral principles are based on reason Signup and view all the answers

What is the primary distinction between end values and mean values as discussed in the text?

End values guide everyday actions, while mean values shape long-term personal goals. Signup and view all the answers

In the context of personal decision-making, what impact can unconscious drives have according to the text?

Unconscious drives can lead to impulsive decision-making and risky behavior. Signup and view all the answers

Why does the text emphasize the importance of a unified value system?

To avoid potential trouble that arises from conflicting end values and mean values. Signup and view all the answers

What is the potential catastrophic consequence of ethical relativism in the securities industry?

People in positions of power will put their own interests before those of their clients Signup and view all the answers

What serious flaw is ethical relativism based on, according to the text?

It rejects the idea of universal moral principles Signup and view all the answers

In what context can ethical relativism lead to a 'me first' stance and the value of greed, as mentioned in the text?

Securities industry transactions Signup and view all the answers

Why is ethical relativism considered to have catastrophic consequences in the securities industry?

It allows people in power to put their own interests before those of clients Signup and view all the answers

What is the concept under which the client's interests come before those of the RR?

Professional duty of care Signup and view all the answers

What did Hans Küng and Rushworth Kidder's findings suggest about major world religions and world leaders?

They commonly hold universal moral principles Signup and view all the answers

What did the text imply regarding the industry's standards of conduct and universal moral principles?

The industry's standards of conduct align with universal moral principles Signup and view all the answers

Why is there much work to be done in terms of values education, as mentioned in the text?

To ensure that securities professionals understand and prioritize clients' interests Signup and view all the answers