How Has the Adoption of Codes of Ethics by Businesses

question 79

Multiple Choice

How has the adoption of codes of ethics by businesses changed over time?

• A) Survival of the fittest has led fewer businesses to abide by their own codes of ethics.
• B) Since the 1960s, vastly more businesses have adopted them to be more in line with public and industry expectations.
• C) The rate of adoption by businesses has remained roughly the same since the 1960s.
• D) The superficial adoption of codes of ethics has increased, while moral expectations of business has decreased.

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Definitions:

Preliminary Prospectus

An initial document given to investors that outlines important details of a potential investment, including risks, objectives, and terms.

Red Herring

A preliminary prospectus provided to potential investors in a new issue of securities, containing information but not the final price.

Registration Statement

A legal document filed with the SEC that contains information about a company's financial operations, used for new securities issuance.

Interest Rates

The expense incurred when obtaining a loan, typically represented as a percent of the total amount lent.