A Conference Board Survey Identified the Following Rationale for Developing

question 20

Multiple Choice

A Conference Board survey identified the following rationale for developing codes of ethics.

• A)Make employees aware that adherence is critical to bottom-line success
• B)Provide a statement of do's and don'ts
• C)Discuss what is expected in stakeholder relationships
• D)Establish values and mission
• E)All of the above

---

Definitions:

Homemade Leverage

A strategy where investors adjust the amount of leverage in their own portfolios by borrowing or lending money to replicate corporate financial leverage.

Capital Structure

This term relates to the way a corporation finances its operations and growth by using different sources of funds, such as debt, equity, and hybrid securities.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholders' equity, indicating the extent to which debt is used to finance the company's assets.