EPS - Chapter 1 - ENG

Which of the following statements is most accurate? Ethics can be described as

• A commitment to upholding the law

• An individuals' personal opinion about right and wrong

• A set of moral principles that provide guidance for our behavior

Answer explanation

Which of the following statements is most accurate? Standard of conduct

• are a necessary component of any code of ethics

• serve as general guide regarding proper conduct by members of a group

• Serve as benchmarks for the minimally acceptable behavior required of members of a group

• Serve as moral principles to guide community members' behaviors

Which of the following statements best describes how professionals use their specialized knowledge and skills? Professionals use their specialized knowledge and skills

• In service to others

• To advance their career

• For the exclusive benefit of their employers

• For the benefits of their professional institutes

Which of the following statements is most accurate? A profession’s code of ethics:

• Includes standards of conduct or specific benchmarks for behavior

• Ensures that all members of a profession will act ethically at all times

• Publicly communicates the shared principles and expected behaviors of a profession’s members.

Which of the following will most likely determine whether an individual will behave unethically?

• The person’s character

• The person’s internal traits and intrinsic motivation

• External factors, such as environments or cultural elements

Which of the following statements is most accurate?

• Large financial rewards, such as bonuses, are the most powerful situational influences

• When decision making focuses on short-term factors, the likelihood of ethical conduct increases

• Situational influences can motive individuals to act in their short-term self-interests without recognizing the long-term risks or consequences for themselves and others

Which of the following statements is most accurate? Investment professionals have a special responsibility to act ethically because

• The industry is heavily regulated

• They are entrusted to protect clients’ assets

• The profession requires compliance with its code of ethics

Which of the following statements is most accurate?

• All legal behavior is ethical behavior

• Some ethical behavior may be illegal

• Legal standards represent the highest standard

Which of the following statements is most accurate?

• Increased regulations are the most useful means to reduce unethical behavior by market participants

• Regulators quickly design and implement laws and regulations to address practices that adversely affect the fairness and efficiency of markets

• New laws designed to reduce or eliminate conduct that adversely affects the markets can create opportunities for different, but similarly problematic conduct

Which of the following are the strength of deontological ethical theories

• They fit with very little of our ordinary moral reasoning

• They focus on the nature of actions and the rules from which they follow

• They pay close attention to the consequences of actions