Section F: Professional Ethics

Question 1

Utilitarianism

Answer 1

You should increase the overall happiness of the world when you can. Results are the emphasis.

Question 2

Relativism

Answer 2

Individual Relativisim - individual people create their own moral standard
Cultural Relativism - morality is grounded in approval of one’s own society

Question 3

Dentology

Answer 3

Identifying and committing to imperative that should be universal law that everyone in the world should be following

Question 4

US Foreign Corrupt Practices Act of 1977 provisions:

Answer 4

1. US companies have adequate books & records and system of internal controls
2. Payments of any amount to foreign officials to obtain business are prohibited

Question 5

What are the overarching ethical principles in the
IMA’s Statement of Ethical Professional Practice

Answer 5

Honesty
Fairness
Objectivity
Responsibility

Question 6

Sustainable Growth Rate formula

Answer 6

ROE * (1 - Dividend payout)

Question 7

Three branches of moral philosophy

Answer 7

• meta-ethics
• normative ethics
• applied ethics

Question 8

Teleological theory

Answer 8

Focus on the results of decisions

Question 9

Deontological theory

Answer 9

Focus on inherent goodness of decisions

Question 10

What are the standards of ima statement of ethics?

Answer 10

Competence
Confidentiality
Integrity
Credibility