The Implementation of a Pro-Active Ethics Program Is Expected to Result

question 25

Multiple Choice

The implementation of a pro-active ethics program is expected to result in

• A) a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow resulting in an increase in share price.
• B) an increased share price resulting from a decrease in risk, but is not expected to affect cash flows.
• C) a positive corporate image and increased respect, but is not expected to affect share price.
• D) a positive corporate image and increased respect, but is not expected to affect cash flows.

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Definitions:

Legal Assent

A promise to buy or sell that the courts will require that the parties obey.

Mutual Mistake

The result of an error by both parties about a material fact, i.e., one that is important in the context of a particular contract.

Fraudulent Misrepresentation

The act of intentionally making false statements to induce another party to enter into a contract, resulting in harm or damage.

Intentional Misrepresentation

Deliberate false statement by one party aimed at getting another party to enter into an agreement.