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Supplementary objective test questions

2.3 Which of the following statements about ethical dilemmas is correct?

A Ethical dilemmas involve unclear choices about what is right and wrong

B Ethical dilemmas involve clear choices about what is right and wrong

C To resolve an ethical dilemma, an accountant should never seek advice

D None of the above

2.4 You have been asked by your line manager to amend a set of accounts
which do not conform to established accounting standards. Which set of
values are conflicting?

A Professional and personal

B Personal and corporate

C Corporate and professional

D Professional and societal

2.5 Where a professional duty conflicts with the law, which should be
followed?

A The professional duty

B The law

C The professional duty if it agreed with the individual’s personal ethics

D The law, only if it agrees with the individual’s personal ethics

CHAPTER 3 – CORPORATE GOVERNANCE

3.1 Corporate governance rules are required because:

A Shareholders want to be able to sue directors

B Stock markets do not trust financial statements

C Management need encouragement to act in the best interests of all
stakeholders

D Companies do not always behave ethically

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