Ethical Principles as They Apply to the Conduct of Personnel

question 17

Multiple Choice

Ethical principles as they apply to the conduct of personnel and business decisions

• A)deal chiefly with standards a company has about what is right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel.
• B)deal chiefly with the behaviors that a company's board of directors expects of all company personnel in both their conduct on the job and off the job.
• C)involve the rules a company's top management and board of directors make about "what is right" and "what is wrong."
• D)deal primarily with the company's duty to comply with legal requirements and conform to ethical norms of society, in general.
• E)are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them.

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's price to a change in interest rates, adjusting for the fact that the bond's cash flows change as yields change.

Maturity

The specific day when the core sum of a financial product, like a bond or loan, must be paid back to the investor.

Semiannually

Occurring twice a year; every six months.

Zero-coupon Bond

A type of bond that does not pay interest during its life; it is sold at a discount from its face value and the return is realized when the bond matures.