For a Code of Ethics to Encourage Ethical Decision Making

question 8

Multiple Choice

For a code of ethics to encourage ethical decision making and behavior in a company,_____.

• A) ​the code must contain broad rather than specific guidelines 
• B) ​the code of ethics should revolve around legal factors and not organizational values 
• C) ​the management must ensure that the code of ethics does not include customers' and shareholders' interests 
• D) ​the management must develop practical ethical standards and procedures specific to the company's line of business

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Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Par

This refers to the face value of a bond or stock as stated by the issuing company.

Net Income

After all costs and taxes are removed from revenues, the company's residual profit.

Treasury Stock

This refers to shares of stock that were issued and later reacquired by the issuing corporation. It is often held to utilize in future acquisitions or to reissue to employees as part of compensation packages.