CGM CGM Ethics & Compliance Management

Question 1

A general manager discovers that a sales team member has been falsifying expense reports. What is the MOST appropriate first step?

Accepted Answer

Conduct a quiet internal investigation before taking action

Answer

An internal investigation should be conducted first to gather facts before deciding on disciplinary action.

Question 2

Which document typically defines a company's standards for ethical behavior and guides employee decision-making?

Accepted Answer

Code of conduct

Answer

A code of conduct outlines the ethical standards and behavioral expectations for all employees.

Question 3

What is the primary purpose of a whistleblower policy in an organization?

Accepted Answer

To protect employees who report unethical or illegal activity

Answer

Whistleblower policies protect employees from retaliation when they report misconduct or violations.

Question 4

A CGM candidate must understand that conflicts of interest in management are BEST addressed by:

Accepted Answer

Disclosing them and recusing oneself from related decisions

Answer

Disclosure and recusal from related decisions is the ethical standard for managing conflicts of interest.

Question 5

The Sarbanes-Oxley Act (SOX) primarily affects which type of organizations in the US?

Accepted Answer

Publicly traded companies

Answer

SOX applies to publicly traded companies and establishes requirements for financial reporting and internal controls.

CGM - Certified General Manager Practice Test