Sophisticated Clients Who Are Starting a Business Should

question 48

Multiple Choice

Sophisticated clients who are starting a business should

• A) make a commitment to ethical behaviour and prepare a statement of values.
• B) only concern themselves with ethical behaviour that is required by law.
• C) consult a lawyer about how to engage in unethical behaviour undetected.
• D) refrain from reporting illegal or unethical behaviour.
• E) opt not to prepare a code of conduct because of potential liability exposure in the event of a breach.

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Definitions:

Mark-Up Percentage

The percentage added to the cost price of goods to cover overhead and profit in the selling price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Sales Volume

The number of units of a product or service sold in a specific period of time, indicative of consumer demand and business performance.

Demand Elastic

Refers to the degree to which demand for a good or service varies with its price. High elasticity indicates demand changes significantly with price changes, while low elasticity indicates little to no change.