Which of the Following Statements Is True Regarding the Relationship

question 44

Multiple Choice

Which of the following statements is true regarding the relationship between law and ethics?

• A) All ethical standards have been enacted as law.
• B) Ethics establish a minimum degree of conduct while the law demands more.
• C) Ethics and the law are completely unrelated to each other.
• D) Law establishes a minimum degree of conduct while ethics demand more.

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Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity or making a decision.

Accounting Profits

The financial gains of a company calculated by subtracting total expenses from total revenues according to standard accounting practices.

Economic Profits

The financial difference between what a business earns in total revenue and what it spends, considering both explicit and indirect costs.

Implicit Costs

The opportunity costs involved in using resources that a firm already owns, for which it does not make a direct payment.