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

Due diligence means proactively identifying and mitigating compliance risks through systematic review.

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

Workplace safety complaints must be investigated and hazards corrected promptly to protect employees and ensure compliance.

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

The Equal Employment Opportunity Commission (EEOC) requires non-discriminatory hiring practices, which is a legal compliance mandate.

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

Accepting gifts in exchange for business decisions constitutes bribery and a direct conflict of interest.

Question 5

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

Accepted Answer

Implementing segregation of duties

Answer

Segregation of duties ensures no single employee controls all aspects of a financial transaction, reducing fraud risk.

CGM - Certified General Manager Practice Test