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ACC 112: Governance, Ethics, Risk
and Controls
SY2023-2024, First Semester
Quiz no. 4
Multiple Choice. Choose the correct answer.
1. Which of the following is an objective of Integrity
Initiative Campaign
a. to help in diminishing if not fully
eradicating the vicious cycle of
corruption in the Philippines.
b. to build doubt in government, more
equitable society and fair market
conditions by promoting
c. Both (a) and (b).
d. Neither (a) nor (b).
2. Which of the following is not true about Integrity
Initiative Campaign
a. organized by a private sector-led
campaign aiming to strengthen ethical
standards in business.
b. Makati Business Club and European
Chamber of Commerce of the
Philippines serves as the Integrity
Initiative Secretariat.
c. multi-sectoral that seeks to
institutionalize integrity standards
among various sectors of society,
business, government, judiciary,
academe, youth, civil society, church
and media.
d. None of the above.
3. It is a formal expression of organization’s values
and ethics.
a. Code of Ethics
b. Code of Ethics for Philippine Business
c. Code of Conduct
d. Code of Corporate Governance
4. Which of the following is not the objective of
Code of Conduct?
a. Guide directors and senior executive to
the practices necessary to maintain
confidence in organization’s integrity.
b. Promote responsibility and
accountability of individuals for
reporting and investigating reports of
ethical practices.
c. Ensure compliance with legal and other
obligations to legitimate stakeholders.
d. None of the above.
5. Which of the following of Code of Ethics for
Philippine Business?
a. Promotes responsibility and
accountability of individuals for reporting
and investigating reports of unethical
practices.
b. Seeks to express systematically and
coherently the principles of business
practices accepted and professes by
Philippine business at it’s best and
seeks to apply these to current and
changing needs.
Class number:
Student number:
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c.
Sets out an organization's ethical
guidelines and best practices to follow
for honesty, integrity, and
professionalism.
d. None of the above.
6. Which of the following conducts is most likely
observed by the CEO?
a. Observe fairness and due process to the
regarding the employees having the
right to file and respond to complaints
against suspected illegal or unethical
practices.
b. Employees and all third parties are not
permitted to offer, promise, or give as
well as demand or accept directly or
indirectly in order to obtain, retain or
secure any undue advantage in the
conduct of business.
c. Leads by example by consistently
demonstrating the value of
conducting business with integrity.
d. Financial records to conform to the
standards accounting principles and
SEC requirement and abide to RA 9160Anti-Money laundering act.
7. Which of the following conducts is most likely
observed by the CFO?
a. Compliance with laws and regulations
pertaining to supply chain management.
b. Requiring all employees to ensure a
complete and accurate books and
records.
c. Have instituted training programs or
business ethics covering all level of
organization.
d. None of the above.
8. Which of the following conducts is most likely
observed by a warehouse manager?
a. Not to tolerate any breaches in
existing laws in exchange for undue
advantage and unethical concessions
or favor. Pays correct duties and
taxes based on transparent
assessment of goods and services.
b. Officers strongly communicate
organizations position against bribery,
corruption and unethical business
practices within company and the
broader public.
c. Clearly communicates rules and
guidelines on giving gifts, entertainment,
tokens of hospitality, and contributions
to/from public and private organizations
and their representatives.
d. None of the above.
9. Which of the following is a principle of conduct of
business towards customers?
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a. Business shall avoid anything that is
detrimental to the health, safety and
growth of the proper user or
beneficiary.
b. Business shall recognize the unique
position of the employees as individuals
with a vital stake in their work and at the
same time with inherent obligation to
their own families.
c. No suppliers are encouraged to commit
his resources for apparently long-term
purposes unless for reasonable
guaranteed orders.
d. None of the above.
10. Which of the following is a principle of conduct of
business towards a shareholder?
a. Propose sound policies in the use of
human and material resources.
b. Furnish the owners and other
providers of capital with such
information as they may reasonably
require.
c. Make use of discoveries that will
improve products or services.
d. None of the above.
11. This is the identification, assessment and
prioritization of risk followed by coordinated and
economical application of resources to minimize,
monitor and control the probability and/or impact
of unfortunate events and to maximize the
realization of opportunities.
a. Risk mitigation
b. Risk management
c. Risk reduction
d. Risk assessment
12. This is a process under the risk management
framework which determines the sources of a
particular risk, areas of impacts, and potential
events including their causes and
consequences.
a. Risk assessment
b. Risk identification
c. Risk evaluation
d. None of the above.
16. ABC Company is a Philippine bank that plans to
venture into doing cryptocurrency in the
Philippines as part of its expansion of banking
business. Doing cryptocurrency as a bank may
expose ABC into various business risks.
Eventually, the board of directors of ABC
Company decided to not pursue the
cryptocurrency venture. What kind of risk
treatment did ABC apply in the scenario?
a. Risk avoidance
b. Risk reduction
c. Risk sharing
d. Risk retention
17. ABC Company is an oil company. Since the
price of the oil is fluctuating, ABC entered into a
3-month forward contract to buy with DEF
Company to hedge the price of the oil after 3
months. The price of the oil after 3 months may
or may not guarantee potential savings from the
increase of the oil price after 3 months. What
kind of risk treatment did ABC apply in the
scenario?
a. Risk avoidance
b. Risk reduction
c. Risk sharing
d. Risk retention
18. ABC Company, based in the Philippines,
entered into a purchase agreement of laptop
units abroad. The purchase agreement was
denominated in US dollar. Meaning, the cost of
the laptop is payable in US dollars. ABC became
exposed to foreign exchange risk from the
transaction. ABC did not nothing with the US
dollar payable. What kind of risk treatment did
ABC apply in the scenario?
a. Risk avoidance
b. Risk reduction
c. Risk sharing
d. Risk retention
13. This is the identification of potential
consequences and factors that affect the
consequences.
a. Risk assessment
b. Risk identification
c. Risk evaluation
d. None of the above.
14. This is when decisions are made to treat or
accept risks with consideration of internal, legal,
regulatory and external party requirements.
a. Risk assessment
b. Risk identification
c. Risk evaluation
d. None of the above.
15. ABC Company is an insurance company that
provides insurance to its customers against car
accidents. ABC Company enters into an
insurance agreement with DEF Company to
protect certain risk of ABC against major claims
from the insurance contract it provides to the
latter’s customers. What kind of risk treatment
did ABC apply in the scenario?
a. Risk avoidance
b. Risk reduction
c. Risk sharing
d. Risk retention
19. This is uncertainty of not meeting the current
obligations with current assets.
a. Default risk
b. Liquidity risk
c. Interest rate risk
d. Credit risk
20. This is the exposure a company or organization
has to factor(s) that will lower its profits or lead it
to fail.
a. Financial risk
b. Compliance risk
c. Business risk
d. Investment risk
*** End of Quiz ***