All of the Following Statements About the Creation of a Code

question 126

Multiple Choice

All of the following statements about the creation of a code of ethics are true EXCEPT:

• A) A written code helps employees avoid confusion when determining whether their decisions are ethical.
• B) A code can be an effective internal control on behavior.
• C) The process of formulating the code facilitates discussions that ultimately create better decisions.
• D) A code helps employees identify what their firm recognizes to be acceptable business practices.
• E) A code guarantees ethical behavior among a firm's employees.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a given market, determined by supply and demand.

Units

Measurements or quantities of a product or service.

Short-Run Costs

Costs that vary with the level of output in the short term, where at least one factor of production is fixed.

Profitable Level

The point at which a business or operation generates revenue that exceeds its costs, leading to profitability.