CCM Corporate Governance and Ethical Standards 3

Question 1

Which of the following BEST describes a 'tone at the top' in compliance governance?

Accepted Answer

Senior leadership's demonstrated commitment to ethical conduct and compliance

Answer

Tone at the top refers to senior leadership visibly modeling and reinforcing ethical behavior and compliance culture.

Question 2

Under the Business Judgment Rule, courts generally will NOT second-guess board decisions if directors acted with:

Accepted Answer

Good faith, informed basis, and honest belief the action was in the company's best interest

Answer

The Business Judgment Rule protects directors who acted in good faith, on an informed basis, and with an honest belief in the company's best interest.

Question 3

What is the primary purpose of a Board Skills Matrix?

Accepted Answer

To identify gaps in collective board competencies

Answer

A skills matrix maps existing board competencies against needed expertise to identify gaps for recruitment purposes.

Question 4

Which ethical theory holds that the morality of an action is determined solely by its consequences?

Accepted Answer

Consequentialism

Answer

Consequentialism (including utilitarianism) judges actions as right or wrong based on their outcomes.

Question 5

A whistleblower policy MUST include which of the following to be effective?

Accepted Answer

Non-retaliation protections for good-faith reporters

Answer

Effective whistleblower policies must protect reporters from retaliation to encourage good-faith reporting.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM Corporate Governance and Ethical Standards 3