The Board of Directors of a Company Is Responsible for Determining

question 14

Multiple Choice

The Board of Directors of a company is responsible for determining, articulating, and communicating the values and standards of the business, and for ensuring that the policies, procedures, and controls in place act to support, rather than hinder, ethical values throughout the business.
Which one of the following corporate elements and characteristics can the Board of Directors influence the most to ensure that the organization has an ethical culture?

• A) Individual factors
• B) Personal values
• C) Employee integrity
• D) Individual beliefs
• E) Procedures and controls for oversight

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society.

Social Welfare

A set of government programs aimed at providing support to the needy in society, ensuring a minimum standard of living and protection against economic risks.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods.

Benevolent Social Planner

A theoretical construct representing an entity or policymaker that aims to achieve the most efficient and equitable outcomes for society as a whole, often seen in economic models.