Which of the Following Is the Best Definition of Business

question 32

Multiple Choice

Which of the following is the best definition of business ethics?

• A)The practice of obeying applicable business laws and regulations.
• B)The practice of competing fairly and declining to put your own interests above those of your company or its stakeholders.
• C)The practice of responding to morally problematic business situations.
• D)The practice of making business decisions that are most beneficial to stakeholders.

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment, calculated by subtracting the risk-free rate from the return of the investment and dividing by the standard deviation of the investment's returns.

Risk-Free Return

The theoretical return on an investment with zero risk, typically associated with government bonds.

Jensen's Measure

A performance evaluation tool that measures the excess return of a portfolio above the expected return, accounting for risk.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government securities like Treasury bills.