Which of the Following Is True of Business Ethics

question 40

Multiple Choice

Which of the following is true of business ethics?

• A) Certain notions such as fairness, honesty, and reciprocity are universal norms.
• B) Business ethics is an agreed-upon code of conduct in business, based on laws.
• C) The perception of what is ethical and what is not is similar across different cultures.
• D) Business ethics needs to be codified into law in order to be followed.

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Definitions:

Market Risk Premium

The excess return that investors require for choosing a risky investment over a risk-free one.

Excess Return

The return on an investment that exceeds the return on a risk-free asset such as a Treasury bond.

Risk-Free Asset

A secure financial asset offering a promised payoff without any chance of losing money, commonly found in the form of government bonds.

Lithium-Base Grease

A type of lubricant made from lithium soap, used for its high resistance to extreme temperatures and water washout.