Ethical Obligations And Decision Making In Accounting Text And Cases 4th Edition By Steven – Test Bank

Chapter 08 Ethical Leadership and Decision-Making in Accounting Answer Key

Multiple Choice Questions

1. It can be said that ethical leaders exhibit each of the following traits except for:

A. Ethical leaders understand the need for respect, openness and trust

B. Ethical leaders aim to empower others to achieve success based on right action

C. Ethical leaders take responsibility for their actions and are accountable

D. Ethical leaders encourage behaviors whereby employees do what the leaders say

AACSB: Ethics
AICPA: BB Critical Thinking
AICPA: FN Decision Making
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-01 Explain the characteristics of ethical leaders.
Topic: What is Ethical Leadership?

2. The statement about leadership attributed to John Maxwell is:

A. Visions are not simple goals, but rather ways of seeing the future that implicitly or explicitly entail some notion of the good

B. Principle-centered leaders build greater, more trusting and communicative relationships with others in the workplace

C. Leaders lead by example not based on what they say

D. Leaders always follow the law even if it deviates from ethical action

3. With respect to leadership in the accounting profession, it might be said that:

A. Ethical judgment is more important than how one makes decisions

B. Partners must exhibit moral imagination through ethical perception of what it means to be ethical, professional, and successful

C. Partners must exhibit ethical decision making through ethical sensitivity to the needs of one’s firm

D. How one makes decisions is more important than ethical leadership

4. Trevino et al. believe ethical leaders possess each of the following two traits:

A. Moral follower and moral servant

B. Moral person and moral manager

C. Moral person and moral employee

D. Moral person and transformational leader

AACSB: Ethics
AICPA: BB Critical Thinking
AICPA: FN Decision Making
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 08-01 Explain the characteristics of ethical leaders.
Topic: What is Ethical Leadership?

5. To be an ethical leader, executives must also:

A. Attend to cultivating ethics and be an ethical person

B. Attend to client’s interest and be a moral person

C. Serve in followership roles

D. Serve as servant leaders

6. To hold employees accountable to ethical standards, moral managers:

A. Walk the talk of leadership

B. Use reward systems to encourage ethical performance

C. Strive to do what is right regardless of the consequences of one’s actions

D. All of the above

7. In accounting, building a reputation for ethical leadership means to:

A. Enable ethics and values to take place without fear of retaliation

B. Enable ethics and values to shine through the fog of beating the competition and meeting financial projections

C. Refrain from using non-GAAP measures of earnings

D. Create an environment that fosters short-term shareholder value

8. An authentic leader:

A. Is focused on building short-term shareholder value, not in just beating quarterly estimates

B. Is focused on controlling management’s desires to beat quarterly estimates

C. Empowers employees to make choices after discussing them with leaders

D. Acts consistently with norms of behavior

AACSB: Ethics
AICPA: BB Critical Thinking
AICPA: FN Decision Making
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish between types of leaders.
Topic: Authentic Leaders

9. Transformational leaders:

A. Empower employees to act based on their ethical goals and values

B. Follow what top management sets as its goals for the organization

C. Causes change in individuals and social systems

D. Connect the follower’s behavior to the collective identity of the organization

AACSB: Ethics
AICPA: BB Critical Thinking
AICPA: FN Decision Making
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish between types of leaders.
Topic: Authentic Leaders

10. It can be said about followership that:

A. Followership is the same as leadership

B. Followership and servant leadership are the same

C. Followership is the flip side of leadership

D. Followers are always transformational leaders

AACSB: Ethics
AICPA: BB Critical Thinking
AICPA: FN Decision Making
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 08-02 Distinguish between types of leaders.
Topic: Authentic Leaders