The Institute of Management Accountants' Statement of Ethical Professional Practice

question 10

Multiple Choice

The Institute of Management Accountants' Statement of Ethical Professional Practice states that when faced with significant ethical issues, management accountants should first:

• A) discuss such problems with the immediate superior except when it appears that the superior is involved.
• B) clarify relevant concepts by confidential discussion with an objective advisor to obtain an understanding of possible courses of action.
• C) follow the established policies of the organization bearing on the resolution of such conflict.
• D) submit an informative memorandum describing the ethical issue to an appropriate representative of the organization and resign if no action is taken as a result of the memorandum.

---

Definitions:

Repeated Game

A game-theory concept involving the same game played multiple times, where outcomes can be affected by previous games.

Cournot Model

An economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide upon independently and at the same time.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of the strategies chosen by other players.

Dominant Strategy

A strategy in game theory that is the best for a player to follow, regardless of what the opponent does.