Which of the Following Statements About Implementing an Ethics and Legal

question 26

Multiple Choice

Which of the following statements about implementing an ethics and legal compliance program is false?

• A) It requires open communication.
• B) It requires consistent enforcement of standards from the code of conduct.
• C) It rarely needs to be revised.
• D) It requires taking reasonable steps in response to violations of standards.
• E) It helps create a buffer zone on issues that could trigger serious legal complications for the company.

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Definitions:

Ending Inventory

Ending inventory refers to the total value or quantity of unsold goods that a company holds at the end of an accounting period.

Cash Disbursements

The outflow of cash for expenses or investments, typically detailed in a financial planning or accounting report.

Goods Purchased

Items bought by a company for resale or use in production, contributing to inventory.

Variable Selling Expenses

Costs that fluctuate in direct proportion to changes in sales volume, such as commissions and shipping charges.