Which Statement Best Describes a Written Code of Ethics

question 127

Multiple Choice

Which statement best describes a written code of ethics?

• A) It tends to be ineffective in multinational corporations that have operations in nations with different cultures.
• B) It is more important than corporate culture in the encouragement of ethical behaviour among employees.
• C) It is a way to effectively establish ethical behaviour even if it is not consistently enforced.
• D) It is a key element of a company's formal ethics program.

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Definitions:

Profits

represents the financial gains obtained from business activities after subtracting all expenses.

Transactions

Agreements or exchanges between parties, often involving the sale, purchase, or trade of goods and services.

Joint Stock Company

A type of business entity owned by shareholders where the stock can be bought and sold on stock exchanges.

Perpetual Existence

A corporate structure characteristic where a company continues indefinitely, unless dissolved, regardless of changes in ownership or management.