How Do Top Managers BEST Demonstrate a Commitment to Ethical

question 6

Multiple Choice

How do top managers BEST demonstrate a commitment to ethical business practices?

• A) By adopting and enforcing written codes of ethics
• B) By reading employees' e-mails
• C) By decentralized decision-making practices
• D) By cooperating with other companies
• E) By monitoring employees' Web searches

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Definitions:

FASB

The Financial Accounting Standards Board is responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations following Generally Accepted Accounting Principles (GAAP) in the United States.

Lease Classification

The categorization of lease agreements as either finance leases or operating leases, determined by specific criteria that affect the accounting treatment.

Lease Accounting

The accounting process that involves recording and managing leases, categorizing them as either operating or finance (capital) leases, and recognition of related expenses and liabilities.