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ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL

Student Activity Sheet Module #08
Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________
Materials:
LEARNING OBJECTIVE: Student Activity Sheet;
This assessment measures the competence of the student in terms of pencil with eraser and ball pen
his/her application of knowledge and skills in the following topics:
1. SEC Code of Corporate Governance
2. Introduction to Ethics
3. Business Ethics
ACC 112 - CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL
CONTROL
P1 Quiz 2
GENERAL DIRECTIONS
READ THIS PAGE BEFORE STARTING THE ASSESSMENT
This test is composed of two (3) sections and has a total score of sixty (5) points. You have one (1) hour to
finish this examination. The composition is as follows:
(1) Multiple-choice question Section. The questions in this section is with four answer choices. The test is
composed of ten (10) questions and is rated as one (1) point each.
(2) Enumeration Section. The test is composed of three (2) problems with several sub-
problems/requirements. Please see rating per problem/requirement.
(3) Essay Section. The test is composed of three (3) problems with several sub-problems/requirements.
Please see rating per problem/requirement.
 All things unnecessary for the test must be put in front of the testing area. Use BLACK or BLUE ink
ballpen only. Write all your answers on the designated space. Further, erasures are strictly NOT allowed
and will invalidate your answers.
 You may NOT use smart phones or reference materials during the testing session. Only the allowed
calculators should be used.
 Try to answer all questions. In general, if you have some knowledge about a question, it is better to try
to answer it. You will not be penalized for guessing.
 Be sure to allocate your time carefully so you can complete the entire test within the exam session. You
may go back and review your answers at any time during the exam session.
 Those who are caught cheating or doing acts not allowed during the exam shall be instructed to surrender
their test papers and shall leave the testing room immediately. Subsequently, their papers shall be rated
as ZERO.
This concludes the instruction page.

You may now begin answering.
This document is the property of PHINMA EDUCATION


MULTIPLE CHOICE
________1. Business ethics is the application of ethics to the special problems and opportunities experienced
by business people.
a. True
b. False.
________2. Which of the following statements is untrue

a. Companies should set up a remuneration committee consisting of independent non-executive directors.
b. The remuneration of the non-executive directors should be determined by the executives.
c. The model articles provide that directors should not be permitted to determine their own levels of
remuneration.
d. Remuneration committees should consist of at least three directors, although in smaller companies, this
may be reduced to two
________3. What is meant by separation of ownership and control?

a. That the owners of companies have become separated from those who control companies.
b. That the law should seek to keep the owners and controllers of company apart in order to avoid an over-
concentration of power High pay will render the board less competent.
c. That owners and controllers of companies should not act in concert to defeat resolutions.
d. hat those who control the company should be separate to those who own it
________4. The only social responsibility that a business have is to focus on how business decisions affect
company operations:
a. True
b. False
________5. Which of the following is the study and practice of decisions about what is good, or right?
a. Ethics
b. Consequences
c. Law
d. Morals
________6. An electrician working in a small town is the only electrician within a 100-mile radius. He knows
that the people who have medical equipment at home have the highest need for power, so he charges them
the double to fix problems with their electricity, compared with the average customer. The community is angry
about this choice. the business practice is most likely?
a. Ethical because it is not illegal for a company to set its prices based on maximizing profits.
b. Ethical because owners should focus only on the impact of decisions of the firm.
c. Unethical because it is against the law for a company to charge one customer more than another.
d. Unethical because businesses operate in a community and communities have expectations for behavior of
individuals, groups, and businesses.
________7. Which of the following if true regarding business ethics?


a. Business ethics results in a set of correct decisions and does not simply refer to standards of business conduct.
b. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the
theory of rule utilitarianism is followed.
c. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the
theory of virtue is followed a fiduciary duty.
d. Business ethics refers to standards of business conduct but does not result in a set of correct decisions.
________8. Which of the following are stakeholders of a business?

a. Employees but not shareholders
b. Shareholders, employees, customers, and management
c. Shareholders but not employees
d. Customers but not employees or shareholders
________9. Business ethics results in a set of correct decisions .

a. True
b. False
________10. A company wants to open a branch in a foreign country but discovers it would have to bribe
government officials to get a permit to obtain materials necessary to build its headquarters. Which of the
following is an example of an ethical response?
a. Paying the bribe because the company’s first obligation is to its shareholders.
b. Paying the bribe because it is customary in the country where business is to be constructed.
c. Not paying the bribe and bringing in outside materials from foreign country to complete the construction.
d. Not paying the bribe and convincing a local company to illegally sell materials to them, since demanding bribes is
unethical behavior..
Part II. Enumeration
1. Give the two primary reason why people act unethically? (4 pts)
2. Give at least 6 characteristic and values associated with ethical behavior.


Part III. Essay (10 points each)
1. Why organization require business ethics and what are the benefits of ethical organization?
2. Explain the purpose of having an independent internal audit function in a publicly-listed corporation as required by the
SEC Code of Corporate Governance.
3. Explain the impact of business ethics in the society.
-NOTHING FOLLOWS-

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ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,

RISK MANAGEMENT AND INTERNAL CONTROL

Name: ____________________________________________________________ Class number: _______

This concludes the instruction page.