Practice Test Geeks(CCB) Certified Compliance and Business Specialist Practice Test
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Business Ethics & Corporate Governance Flashcards

7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Ethics & Corporate Governance flashcards as text

  1. A company's board has 10 members, 9 of whom are former colleagues of the CEO. This structure primarily raises concerns about:

    Answer: Lack of board independence and potential rubber-stamping of management decisions

    A board dominated by insiders or associates of the CEO lacks independence, undermining its ability to provide objective oversight of management.

  2. Under the Foreign Corrupt Practices Act (FCPA), which of the following is explicitly prohibited?

    Answer: Paying a foreign official to expedite a routine government action

    The FCPA prohibits bribing foreign government officials, including facilitation payments to expedite routine actions like permits or customs clearance.

  3. Which of the following best describes 'stakeholder theory' in business ethics?

    Answer: Companies must balance the interests of all parties affected by their actions, not just shareholders

    Stakeholder theory, associated with R. Edward Freeman, argues corporations must consider employees, customers, communities, and other affected parties—not just shareholders.

  4. A whistleblower reports financial fraud internally but the company retaliates by terminating their employment. Under Dodd-Frank, the whistleblower may:

    Answer: File a retaliation complaint with the SEC and seek reinstatement and back pay

    Dodd-Frank provides strong anti-retaliation protections for SEC whistleblowers, including the right to file complaints and receive reinstatement and financial remedies.

  5. The concept of 'materiality' in corporate disclosure ethics means:

    Answer: Only information that a reasonable investor would consider important in making decisions must be disclosed

    Material information is information a reasonable investor would likely consider important when making investment decisions, and must be timely disclosed.

  6. A compliance officer learns that a division head has been falsifying expense reports but is also the company's top revenue generator. The ethical response is:

    Answer: Apply the same disciplinary process used for any other employee

    Ethical governance requires consistent application of policies regardless of an individual's status or contribution to company revenue.

  7. Which board committee has primary responsibility for overseeing the integrity of financial reporting and the relationship with external auditors?

    Answer: Audit committee

    The audit committee oversees financial reporting integrity, internal controls, and the engagement and independence of external auditors.