1.Which of the following practices should be included in a firm’s code of ethics?

A)   Providing the board with relevant corporate information in a timely manner and allowing board members or other insiders to purchase stock before shareholders can make purchases.

B)   Neither providing the board with relevant corporate information in a timely manner or prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

C)   Prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

D)   Providing the board with relevant corporate information in a timely manner and prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

2.A strong corporate code of ethics is vitally important. Which of the following statements concerning a firm’s code of ethics is least likely accurate?

A)   As part of investor review of the firm’s ethical climate, investors should determine whether the firm gives the board access to relevant corporate information in a timely manner.

B)   A firm’s code of ethics sets standards for ethical conduct based on basic principles of integrity, trust and honesty.

C)   A firm’s code of ethics should require clear disclosure of any advantages given to the firm’s insiders that are not also offered to shareholders.

D)   As part of investor review of the firm’s ethical climate, investors should determine whether the firm waived any of its ethical code’s provisions during recent periods, and why.

答案和详解如下：

1.Which of the following practices should be included in a firm’s code of ethics?

A)   Providing the board with relevant corporate information in a timely manner and allowing board members or other insiders to purchase stock before shareholders can make purchases.

B)   Neither providing the board with relevant corporate information in a timely manner or prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

C)   Prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

D)   Providing the board with relevant corporate information in a timely manner and prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

The correct answer was D)    

The firm’s code of ethics establishes the basic principles of integrity, trust, and honesty. Two of the practices listed in the reading discuss providing the board with relevant corporate information in a timely manner and prohibiting board members or other insiders from purchasing stock before shareholders can make purchases.

2.A strong corporate code of ethics is vitally important. Which of the following statements concerning a firm’s code of ethics is least likely accurate?

A)   As part of investor review of the firm’s ethical climate, investors should determine whether the firm gives the board access to relevant corporate information in a timely manner.

B)   A firm’s code of ethics sets standards for ethical conduct based on basic principles of integrity, trust and honesty.

C)   A firm’s code of ethics should require clear disclosure of any advantages given to the firm’s insiders that are not also offered to shareholders.

D)   As part of investor review of the firm’s ethical climate, investors should determine whether the firm waived any of its ethical code’s provisions during recent periods, and why.

The correct answer was C)

The firm’s code of ethics should prohibit practices that give advantages to company insiders that are not also offered to shareholders.