A Strong Ethics Program Includes All of the Following Elements

question 37

Multiple Choice

A strong ethics program includes all of the following elements except

• A)a clause promising good stock market performance.
• B)a written code of conduct or ethics.
• C)formal ethics training.
• D)auditing, monitoring, enforcement, and revision of standards.
• E)high-level personnel to oversee the program.

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Definitions:

Subordinated Debentures

Debentures that have claims on assets, in the event of bankruptcy, only after senior debt as named in the subordinated debt’s indenture has been paid off. Subordinated debentures may be subordinated to designated notes payable or to all other debt.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Second Mortgage Bonds

A type of bond secured by a second-priority claim on the collateral that has already been pledged for another bond.

Floating-Rate Debt

Debt securities with interest rates that reset periodically, based on a benchmark interest rate or index, thus providing protection against interest rate fluctuations.