Which of the Following Is an Effective Tool for Preventing

question 289

Multiple Choice

Which of the following is an effective tool for preventing industry level ethical lapses?

• A) Self-regulatory activism
• B) Ethics training
• C) Screening
• D) Internal controls

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Definitions:

Cost Of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.

Capital Structure

The composition of a company's liabilities and equity, describing how it finances its overall operations and growth.

Earnings Per Share

A financial ratio that divides a company's net earnings available to common shareholders by the number of outstanding shares, indicating the profitability on a per-share basis.

Debt

Money owed by one party to another under the condition that it is to be repaid, often with interest, at a later date.