CFCM Ethics, Compliance & Risk Assessment

Question 1

Why is ethical behavior important in federal contracting?

Accepted Answer

To maintain trust and legal compliance

Answer

To increase profits for the contractor.

Answer

To gain unfair competitive advantages.

Answer

To avoid hiring more personnel.

Question 2

What does a compliance program typically include?

Accepted Answer

Policies, training, and monitoring for adherence

Answer

Only financial tracking tools.

Answer

Random hiring practices.

Answer

Sales and marketing promotions only.

Question 3

Which regulation emphasizes ethical conduct in government contracts?

Accepted Answer

FAR Part 3 – Improper Business Practices and Conflicts of Interest

Answer

FAR Part 12 – Commercial Items.

Answer

FAR Part 15 – Contracting by Negotiation.

Answer

FAR Part 25 – Foreign Acquisition.

Question 4

What is the purpose of risk assessment in contract management?

Accepted Answer

To proactively identify and mitigate risks

Answer

To delay the contract start date.

Answer

To assign blame post-performance.

Answer

To eliminate reporting requirements.

Question 5

Which of the following best represents a conflict of interest?

Accepted Answer

Awarding a contract to a family member without disclosure

Answer

Using unbiased third-party evaluations.

Answer

Hiring based on qualifications only.

Answer

Transparent communication of performance.

Question 6

How often should ethics training be conducted?

Accepted Answer

Annually or as required by policy

Answer

Only during onboarding.

Answer

Once every five years.

Answer

Never unless a violation occurs.

Question 7

Which document outlines contractor responsibilities for ethical conduct?

Accepted Answer

Contractor Code of Business Ethics and Conduct

Answer

Contract price schedule.

Answer

Invoice templates.

Answer

Executive summary.

Question 8

What is one of the goals of internal compliance audits?

Accepted Answer

Identifying compliance gaps and correcting them

Answer

Punishing non-compliant employees.

Answer

Avoiding communication with leadership.

Answer

Delaying reporting to the government.

Question 9

What is a key component of an effective ethics program?

Accepted Answer

Code of conduct and anonymous reporting

Answer

Weekly social events.

Answer

Daily budget reports.

Answer

Personal communication apps.