Which of the Following Statements Is True About Code of Ethics

question 48

Multiple Choice

Which of the following statements is true about code of ethics?

• A)It is most effective when it is too detailed.
• B)It can be an effective internal control of behavior.
• C)It is typically drafted by government agencies.
• D)It is created only for top managers of an organization.

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Definitions:

Unobservable Actions

Actions taken by individuals or entities that cannot be directly observed or monitored, often leading to issues of information asymmetry.

Moral Hazard

A situation in insurance and economics where one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetric information.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.