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CNA Business Law and Ethics Flashcards

6 cards from real CNA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CNA Business Law and Ethics flashcards as text

  1. The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies and individuals from:

    Answer: Bribing foreign government officials to obtain or retain business

    The FCPA makes it illegal for U.S. persons and companies to bribe foreign officials for business advantages, and requires accurate books and records.

  2. Under the AICPA Code of Professional Conduct, which principle requires CPAs to be straightforward and honest in all professional relationships?

    Answer: Integrity

    The integrity principle requires CPAs to be honest and candid, avoiding subordination of judgment or misleading representations in all professional dealings.

  3. A business tort that occurs when a competitor makes false statements of fact about a rival's products is known as:

    Answer: Trade libel (product disparagement)

    Trade libel, or product disparagement, is a business tort involving false statements of fact about a competitor's goods or services that cause economic harm.

  4. Which legal doctrine holds employers responsible for torts committed by employees acting within the scope of their employment?

    Answer: Vicarious liability

    Vicarious liability (respondeat superior) makes employers legally responsible for wrongful acts committed by employees in the course of their work duties.

  5. In bankruptcy law, a Chapter 7 filing involves:

    Answer: Liquidation of assets to pay creditors

    Chapter 7 bankruptcy is a liquidation proceeding in which a trustee sells the debtor's non-exempt assets and distributes proceeds to creditors.

  6. Which principle in accounting ethics requires a CPA not to allow bias, conflicts of interest, or undue influence to override professional judgments?

    Answer: Objectivity

    Objectivity requires CPAs to remain impartial and free from conflicts of interest so their professional judgments are based solely on evidence and facts.