Which of the Following Is the Most Effective Way to Encourage

question 79

Multiple Choice

Which of the following is the most effective way to encourage ethical business behavior?

• A) Pass government regulations.
• B) Provide guidelines from trade associations.
• C) Include an ethics clause in a labor contract.
• D) Establish and enforce a corporate code of ethics.
• E) Rely on employees to blow the whistle.

---

Definitions:

Liquidating Dividend

A type of dividend paid by a corporation out of its capital base, as opposed to its earnings, often signaling the company is dissolving.

Dividend Policy

A company's approach to distributing profits back to its shareholders, dictating how much to pay out as dividends and how often.

Alternate Dividend Policy

A strategy used by a company to vary its dividend payments to shareholders based on its earnings or investment opportunities.

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.