Please answer each question separately with 200 words or more

 

1.  Many would probably say that the purpose of business is to make money.  Indeed, many people invest in business in order to make money. But, is that the sole purpose of business?  While businesses do have a responsibility to make money, do they also have other responsibilities to say employees, the community, etc? If so, what are those responsibilities and how can businesses balance those with the need to make money?   If not, discuss why they should't have such other responsibilities.

 

2.  As you know, businesses have to comply with more and more regulations.  One such regulation is the Sarbanes-Oxley Act (SOX).  In short, the Act requires some businesses to comply with what some would term as "best practices".  The Act was passed in part because shareholder's lost money.  But shouldn't it have been the shareholder's that required the company to comply with "best practices"?  Isn't that their right/role as a shareholder?

 

3.  What are the advantages of an external audit?  What are the advantages of internal audit?  Is one better than the other?

 

4.  There are several examples of companies that sponsor public education and other community events.  How can a company partner with the community without losing profit?  or, is it possible that by putting resources into the community, business can actually be more profitable?

 

5.  There are many ways that companies can ensure compliance.  One way is by setting up controls.  There are generally three types of controls: preventative, corrective and detective.  Give an example of each and explain why they are important.

 

6.  As you know, regulatory agencies are part of government.  When talking about private business, what is the role of government?  Is it proper for government to insert themselves into private business?  Why or why not?