Seven

Question 1

What is the PESTLE analysis?

Answer 1

It is the factors considered for future value
Political - political situation, trade, policies
Economic - Exchange rate, economic growth or decline, interest rates
Social - Lifestyle choices, career attitudes, demographics
Technology - advancements, security
Legal - legislation changes, etc
Environmental - does your business have environmental impact on the globe (CSR - Corporate Social responsibility) and how supply then affects it

Question 2

What is a buyback guarantee

Answer 2

Additional support in the form of lessor agrees to the sell the asset at the end of the lease period for a prearranged price
Lessor gains a direct route to market for asset disposal with the guarantor placing the equipment in their stocking plan and selling through existing dealer network

Question 3

What are the benefits of a buyback guarantee?

Answer 3

Are a part of sale aid
Help grow product sale
Support growth in lessor lending volume while offsetting part of the residual risk

Question 4

Why would a lessor not accept a buyback guarantee and just accept the risk

Answer 4

Lessor confident of their residual risk position and managing the return and disposal of the asset for profit at the end of the lease
Buyback guarantee isn’t risk free as the supplier or manufacturer could still go out of business

Question 5

What is Morality?

Answer 5

It is your own view compared to general ethics

Question 6

Definition of Ethics?

Answer 6

Greek word ‘ethos’ meaning habit or custom moral principles that affect the way in which people make decisions

Question 7

What are the three ethical theories?

Answer 7

Normative (or perspective) ethics - considers the content of moral judgements and standards that assess right and wrong
Meta-ethics - considers the nature of moral judgements and investigates the source and meaning of ethical principles
Applied ethics - Applies ethical principles to real life and business situations

Question 8

What is moral intensity?

Answer 8

The degree to which people see an issue as an ethical one

Question 9

What is Moral Absolutism and Relativism?

Answer 9

• Absolute standards, all moral questions are judged against that standard . Right or wrong = dogmatic approach. Phrases - all, none, never
• Relativism - Allows adoption depending on individual contexts. Allows moral to be influenced by customs, culture, or society. Depending on circumstances as well place, time, moral intensity. - Pragrmatic approach
  Rules can change over time, many sets of ethical rules in society, rules can change depending on circumstances

Question 10

What is Denotological Approach?

Answer 10

‘Duty based’ approach - it is the sense of duty or set of rules industry codes are an example, which are a set of rules that are judged against right and wrong
- Moral Absolutism = Not decided on the outcome rather the means is more important

Question 11

What is Teleological/Consequentialist?

Answer 11

Expected consequences when assessing morality of the situation. Result more important than the means.
Lies are okay if positive outcome

Question 12

What are the steps to the AAA Model?

Answer 12

Step 1 - What are the facts of the case?
Step 2 - What are the ethical issues in the case?
Step 3 - What are the norms, principles and values related to the case?
Step 4 - What are the alternative courses of action?
Step 5 - What are the best courses of action?
Step 6 - What are the consequences of the outcomes so that a final decision can b rebased on full knowledge?
Step 7 - What is the decision?

Question 13

What is an ‘ethical professional’

Answer 13

• Follow rules of fair and responsible conduct in there profession
• Exercises independent judgement to do the right thing, especially things not explicitly addressed in code of conduct

Question 14

What are is the 4 Stage Hierarchy?

Answer 14

1) Minimum Standards
What do we have to do?
Short term Goals
Abdicates decisions and responsibilities

2)Compliance Culture
What can we do?
Unthinking, mechanical, compliance
Dependency on regulators

3) Business Improvement
What can we get out of this?
Focus on business reputation
Using ethics as a marketing edge

4) Value led
What should we do?
All staff live the values
We do it because we want to

Question 15

When to whistleblow?

Answer 15

If standards not met and you challenge it but are not being listened to

Question 16

What are the qualifying disclosures for whistleblowing?

Answer 16

• Someones health and safety are in danger
• Damage to the environment
• Criminal offence
• Company isn’t obeying the law
• Covering up wrongdoing

Question 17

When to contact the PRA (whistleblow)?

Answer 17

Employer will cover it up
Employer would treat them differently if they complain
Employer hasn’t corrected the behaviour despite initial reporting procedures being followed

Question 18

When was the FLA Business Finance Code updated and what are the 5 principles under the code?

Answer 18

In 2016.

• Treat customers fairly and follow all relevant laws and regulations.
• Take reasonable steps to encourage responsible trading between intermediaries and customers.
• Provide customers with appropriate and timely information about their finance agreement.
• Provide effective customer service throughout the period of the finance agreement.
• Operate an effective complaints procedure and ensure this is transparent and easily accessible for customers.

Question 19

What is the non-binding guidance for intermediaries?

Answer 19

Helps to understand what is good practice with 3rd parties and non-binding to abide competition rules as they can’t tell others explicitly what to do

Question 20

What are the 3 sections expected for consumer factsheets?

Answer 20

1) Repaying your loan early
2) Your credit decision explained
3) Credit report fact sheet

Question 21

What are the key steps customer should check at the beginning of an agreement?

Answer 21

Finance agreement
Payments
Terms and conditions
Description of the asset
Status of the supplier
Accuracy and transparency of supplier pricing

Question 22

What is required for professionalism in asset finance?

Answer 22

• Asset expertise
• Knowledge of the supply chain
• Understanding of buying patterns and behaviours