The Ultimate "Stick" Associated with the FSGO Is Fines or Probation

question 48

Multiple Choice

The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and

• A)reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct.
• B)installation of an ethics hotline.
• C)payment of any penalties levied.
• D)appointment of an appropriate high-level manager to oversee the company's program.
• E)divestiture of all assets.

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Definitions:

Stock Index Futures

Are futures contracts where the underlying is a stock index, and they are used by investors to speculate on the future direction of the index's price or to hedge against potential index movements.

Multiplier

An economic factor that quantifies the effect of a change in one economic variable on another, for instance, how government spending affects national income.

Dollars

The official currency of the United States, also widely used as a benchmark and reserve currency globally.

Risk-free Rates

The expected profit from an investment that carries no risk of losing money, often linked to government securities.