An Effective Code of Conduct Should Contain the Company's Policies

question 21

Multiple Choice

An effective code of conduct should contain the company's policies regarding

• A) conflicts of interests.
• B) kickbacks.
• C) gifts and entertainment.
• D) all of the above.

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Definitions:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Competitive Return

The earning or return that an investment generates, over and above the risk-free rate, due to its competitive advantage.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs.

Investment

The allocation of resources, usually financial, into assets with the expectation of generating income or profit in the future.