CGM CGM Ethics & Compliance Management 2

Question 1

In the context of the CGM exam, 'due diligence' in compliance refers to:

Accepted Answer

Taking reasonable steps to identify and address compliance risks

Answer

Hiring legal counsel for all decisions

Answer

Passing all compliance responsibilities to a third party

Answer

Conducting audits only when regulators request them

Question 2

An employee reports a potential OSHA violation. As a general manager, your FIRST action should be to:

Accepted Answer

Investigate the situation and address the hazard immediately

Answer

Dismiss the concern unless injuries have occurred

Answer

Wait for the annual safety audit

Answer

Inform customers about the potential issue

Question 3

Which of the following is an example of a regulatory compliance requirement for US businesses?

Accepted Answer

Maintaining EEOC-compliant hiring practices

Answer

Achieving a Net Promoter Score above 70

Answer

Reaching a specific profit margin

Answer

Posting quarterly earnings on social media

Question 4

A general manager who accepts gifts from vendors in exchange for awarding contracts is engaging in:

Accepted Answer

Bribery and a conflict of interest

Answer

Strategic partnership development

Answer

Standard procurement practice

Answer

Vendor relationship management

Question 5

Which internal control mechanism BEST helps prevent financial fraud in an organization?

Accepted Answer

Implementing segregation of duties

Answer

Allowing one person to control all financial processes

Answer

Eliminating external audits to reduce costs

Answer

Giving managers unlimited financial authority

Question 6

The Foreign Corrupt Practices Act (FCPA) prohibits US companies from:

Accepted Answer

Bribing foreign government officials to obtain business

Answer

Importing goods from foreign markets

Answer

Competing in international tenders

Answer

Hiring foreign nationals in executive roles