ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,

RISK MANAGEMENT AND INTERNAL CONTROL

Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

Materials:
LEARNING OBJECTIVE: Student Activity Sheet;
This assessment measures the competence of the student in terms pencil with eraser and ball pen
of his/her application of knowledge and skills in the following topics:
1. Common unethical practices
2. Ethical Dilemma
3. Initiatives against corruption.
4. Initiative to improve business ethics and reduce corruption
5. Introduction to Risk Management
6. Practical Insights in Reducing and Managing Business
ACC 112 - CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL
SECOND PERIODIC EXAMINATION

GENERAL DIRECTIONS
READ THIS PAGE BEFORE STARTING THE ASSESSMENT

This test is composed of two (2) sections and has a total score of seventy (70) points. You have one (1) hour to finish
this examination. The composition is as follows:

(1) Multiple-choice question Section. The questions in this section is with four answer choices. The test is
composed of thirty (50) questions and is rated as one (1) point each.
(2) Enumeration Section. The test is composed of four (4) problems with several sub-problems/requirements.
Please see rating per problem/requirement.
 All things unnecessary for the test must be put in front of the testing area. Use BLACK or BLUE ink
ballpen only. Write all your answers on the designated space. Further, erasures are strictly NOT
allowed and will invalidate your answers.
 You may NOT use smart phones or reference materials during the testing session. Only the allowed
calculators should be used.
 Try to answer all questions. In general, if you have some knowledge about a question, it is better to
try to answer it. You will not be penalized for guessing.
 Be sure to allocate your time carefully so you can complete the entire test within the exam session.
You may go back and review your answers at any time during the exam session.
 Those who are caught cheating or doing acts not allowed during the exam shall be instructed to
surrender their test papers and shall leave the testing room immediately. Subsequently, their papers
shall be rated as ZERO.

This concludes the instruction page.

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

You may now begin answering.

Part I MULTIPLE CHOICE

1. It refers to an intentionally or sometimes negligently false representation made verbally, by conduct, or

sometimes by nondisclosure or concealment and often for the purpose of deceiving, defrauding, or
causing another to rely on it detrimentally.
a. Deception.
b. Persuasion.
c. Misrepresentation.
d. Over-persuasion
2. Which of the following unethical practice engaged by employees?
a. Unfair labor practices.
b. conflict of Interest
c. Plain graft
d. Sexual harassment
3. Type of unethical practices where director holds directorial position in two different companies doing the
same business.
a. Interlocking directorship
b. Dishonesty
c. Insider Trading
d. Plain Graft
4. A situation a person faces in which a decision must be made about the appropriate behavior.
a. Ethical Challenge
b. Ethical Dilemma
c. Ethical Issue
d. Ethical Management

5. A study and practice of decision about what is good and right.

a. Morals
b. Consequences
c. Business
d. Ethics
6. The term shareholder and stakeholder have the same meaning.
a. Tue
b. False
7. The chairperson of the board of directors and CEO should be leaders with:
a. The ability to motivate
b. Vision and problem-solving skills
c. Business Acumen
d. All of the Above
8. Who is most likely to engage in having employees do work unrelated to business?
a. Board of Directors

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

b. Executive Officers and low-level managers

c. Employees
d. Stockholders
9. It is an act of receiving, asking for or giving any gratification to induce a person to do a favor for private
gain.
a. Unethical practices.
b. Kickbacks
c. Nepotism
d. Corruption
10. Following are possible measures to prevent corruption in workplace except.
a. Statement of Assets, Liabilities and Net Worth
b. Policy on Gifts and Entertainments
c. Clear business process
d. Declaration of conflict of Interest
11. When there’s an _______and the risk is ______compared to the benefits obtained, corruption is most
likely to occur.
a. incentives; minimal
b. opportunity; minimal
c. incentives; high
d. opportunity; high
12. Which of the following is not a characteristic of corruption?
a. Recipient and Payers
b. Culture
c. Unequal wealth distribution
d. None of the above
13. Corruption has several adverse effects on society particularly
a. reducing incentives for individuals to obey the rule of law
b. as corruption increases so do the forces that work to undermine formal institutions
c. limiting the development of formal markets
d. All of the above
14. What is “top level commitment” principle about?
a. Top management should encourage and cover its employees when they commit bribery.
b. Top management is not liable for bribery committed by its employees.
c. Top management should hold training to their employees in order to understand provisions of
Bribery Act.
d. Top management should foster the culture without any room for corruption in its organization.
15. Which is not ill effect of corruption?
a. It could lead others to join terrorist.
b. It leads to inefficient use of public resources.
c. It creates unfair competition and decreases the cost of doing business.
d. None of the above.

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

16. In resolving ethical dilemmas, if ethical issues from the facts has been identified, what the next
approach?
a. Obtain the relevant facts.
b. Identify the alternatives available to the person who must resolve the dilemma.
c. Determine who is affected by the outcome of the dilemma.
d. Identify the likely consequences of each alternative.
17. Which of the following is not example of direct misrepresentation?
a. Deceptive packaging
b. Mislabeling
c. False Advertising
d. Caveat emptor
18. Misrepresentation which contributes to the impressions that businessmen are liars and are out to make
a fast buck.
a. Passive Deception
b. Deliberate Withholding of Information
c. Caveat emptor
d. Over-persuasion
19. Occurs when a broker or another person with access to confidential information use that information to
trade in shares and securities of corporation, thus giving him advantage over other purchasers.
a. Illegal stock trading.
b. Hacking.
c. Illegal brokers.
d. Insider Trading.
20. The following are examples of dishonest acts of employee toward his employer except
a. Bringing home office furniture after paying and securing gate pass from the company administrator.
b. Working overtime upon employees will.
c. Overstating business trip expenses by submitting false receipts.
d. Doing personal errands during office hours.
21. Which of the following is objective of Code of Conduct?
a. promote responsibility and accountability of individuals for reporting and investigating reports of
unethical practices.
b. guide employees to the practices necessary to maintain confidence in organization’s integrity.
c. ensure non-compliance with legal and other obligations to legitimate stakeholders
d. All of the above.
22. Among the commitment of top management section of an organization is
a. To clearly communicates rules and guidelines on giving gifts, entertainment, tokens of hospitality,
and contributions to/from public and private organizations and their representatives
b. To abide by existing laws when transacting with government agencies as stipulated in RA 6713
-Code of Conduct and Ethical Standards for Public Officials and Employees and RA 3019-Anti-Graft
and Corruption Practices Act.
c. To strongly supports integrity practices and allocates sufficient resources for their implementation.

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

d. To have appropriate tools to confidentially receive, monitor and act on internal and external
complaints.
23. The objective of Integrity Initiative Campaign is
a. To communicates the signatories’ commitment to upholding high standards of ethics in all business
transactions.
b. To build trust in government, more equitable society and fair market conditions by promoting
honesty and transparency in the Philippine business.
c. To promote responsibility and accountability of individuals for reporting and investigating reports of
unethical practices.
d. To guide directors and senior executive to the practices necessary to maintain confidence in
organization’s integrity.
24. In the Unified code of conduct for business, the logistics department commits to do
a. To comply with laws and regulations pertaining to supply chain management.
b. To pay taxes in compliance with all laws.
c. To have track record of integrity and compliance with existing laws is a prerequisite when vet third
party consultants, suppliers, intermediaries and agents.
d. To tolerate any breaches in existing laws in exchange for undue advantage and unethical
concessions or favor.
25. These resources are unique quality and should be employed in a manner consistent with personal
dignity.
a. Personal resources.
b. Natural Resources.
c. Human Resources.
d. Economic Resources.
26. Which of the following best describes the principles for the conduct of business toward customers?
a. Business shall in the production of goods and services, strive after the quality that will enable them
to serve their purpose efficiently and effectively.
b. Business shall provide adequate rate of return to those contributing capital and secure security of
their investment.
c. Business participate in the discussion of proposed legislation and or implementation affecting
sectoral, regional, national and international interest.
d. Business shall recognize in their decision making the interest of the general public and, realizing
that they are utilizing to an important degree the use of the nation’s resource.
27. Its purpose is to formally communicates the signatories' commitment to upholding high standards of
ethics in all business transactions.
a. Code of Ethics
b. Code of Conduct
c. Professional Code of Conduct
d. Unified Code of Conduct for Business

28. Likelihood of something unfavorable to happen.

a. uncertainty

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

b. risk
c. consequences
d. accident
29. Which ISO standard enlist principles and guidelines on implementation, the process of risk
management.
a. 31000.0
b. 11000.0
c. 21000.0
d. 41000.0
30. If the chance of loss is high and loss severity is high, generally the most appropriate risk management
tool is:
a. risk transfer
b. risk sharing
c. risk avoidance
d. risk reduction
31. The most difficult and important step in the risk management process generally is:
a. Identifying risk
b. evaluating risk
c. selecting the best method to handle the risk
d. reviewing the program
32. Loss prevention is the best risk management tool when the chance of loss is ____ and the potential
loss severity is _________.
a. low, high
b. high, high
c. high, low
d. low, low
33. Which of the following can be the source of risk in an organization?
a. Internal sources only
b. External sources only
c. Both Internal and External sources
d. Depends upon line of business
34. What is the primary challenge of project management?
a. manage the constraints of time
b. achieve all the project objectives
c. to produce a unique product
d. to bring about beneficial change
35. What is the stage immediately after completion of the risk assessment?
a. preparing a Risk Management Plan
b. preparing a Risk Treatment Plan
c. preparing a Risk Documentation Plan
d. preparing a Risk Reduction Plan
36. Risk Retention is not a good idea if

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

a. the frequency is so low it almost will never happen.

b. the exposure is potentially catastrophic
c. you did not identify the risk
d. risk is unimportant
37. What is the process of steps taken during risk management?
a. identification, analysis, monitoring and review, treatment.
b. identification, analysis, treatment, monitoring, review.
c. identification, treatment, analysis, monitoring, review.
d. analysis, identification, treatment, monitoring and review.
38. Which element is decreased due to various risks?
a. quality
b. brand value
c. profitability
d. All of these
39. Enterprise Risk Management
a. is an outdated method of dealing with risk.
b. is a process that examines all risk collectively.
c. is only applicable to insurance firms.
d. works best when evaluating risk is distinct company silos.
40. The main outcome of risk identification, in risk management process is to:
a. Identify and describe all risks that might occur on the project.
b. Identify and describe risk that have occurred on previous project.
c. Identify and determine the responses to the project risks.
d. Identify and determine the relative importance of the project risks.
41. What reduces credit risk?
a. credit check
b. mortgage insurance
c. security of third party
d. All of the above
42. If you were the manager of the World Trade Center buildings, what loss prevention or reduction
technique could you have implemented before the tragedy that might have made significant difference
in the number of lives cost?
a. Guards on the roof of each building.
b. Evacuation procedures that required everyone to leave after any sign of loss.
c. Stronger exterior building materials.
d. Better background screening of all who were allowed to work in the building.
43. Which of the following is not step in managing IT risk?
a. risk assessment
b. risk mitigation
c. evaluation and assessment
d. None of the above

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

44. Which of the following is not key elements which should be possess by company-wide risk
management system?
a. organizational vision
b. risk management process documentation
c. goals and objectives
d. None of the above.
45. Risk associated with the uncertainty created by the inability to sell investment quickly for cash.
a. Management risk
b. Financial Risk
c. Liquidity Risk
d. Market liquidity risk
46. Sharing with another party the burden of loss or benefit of gain.
a. Risk transfer
b. Risk avoidance
c. Risk Reduction
d. Risk sharing
47. Following measures can be done to control cost except:
a. Reduce waste.
b. Maintain balance between cost and quality.
c. Focus on the big items of expenditure.
d. None of the above.
48. Whish of the following principles will help avoid flawed in financial decision-making?
a. Financial experts were made available only when necessary.
b. Focus on long-term goals rather than its impact on cash flow.
c. Identifying risk and how to partially reduce them.
d. Consider the impact of financial decision.
49. Typical areas of operational risk include:
a. Fraud.
b. Product or design failure.
c. Failure of plant or equipment.
d. Market changes.
50. The process of measuring or assessing risk and developing strategies to manage it.
a. Risk Assessment
b. Risk Identification
c. Risk Management
d. Enterprise-wide Risk Management

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

Part II. Enumeration (20 pts)

1. Enumerate the six-step approach to resolve ethical dilemma..

Answer:

1. Obtain the relevant facts.

2. Identify the ethical issues from the facts.
3. Determine who is affected by the outcome of the dilemma and how each person or group is affected.
4. Identify the alternatives available to the person who must resolve the dilemma.
5. Identify the consequences of each alternative.
6. Decide the appropriate actions.

2. Enumerate at least 5 types of Direct Misrepresentation

Answer:

Deceptive Packaging.

Misbranding or Mislabeling.

False or Misleading Advertising.

Adulteration

Weight understatement or Short weighing

Measurement understatement or Short measurement

Quantity understatement or Short numbering

3. Give at least 4 characteristics of corruption

Answer:

 Recipient and Payers

 Extorsion
 Lubricant of society
 An ethical dilemma

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #17

Name: ____________________________________________________________ Class number: _______

Section: ____________ Schedule: _____________________________________ Date: _______________

 Poverty Alleviation
 Culture -
 Kindness among friends

4. Enumerate the basic approach in reducing enterprise-wide risks.

Answer:
Step 1 – Establish an Enterprise Risk Structure

Step 2 – Assign responsibility

Step 3 – Create an enterprise risk map

Step 4 – Decision making through enterprise risk reporting

Step 5 – Changing culture from local to enterprise

-NOTHING FOLLOWS-

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