Which of the Following Statements Is True of the Code

question 25

Multiple Choice

Which of the following statements is true of the code of ethics of an organization?

• A)The code of ethics is highly unlikely to be created from scratch.
• B)The code of ethics is unlikely to include detailed accounts of punishments for violations of the code.
• C)The code of ethics does not have a perfect model.
• D)The audience for a code of ethics includes only the organization's customers.

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Definitions:

Risk Level

The degree of variability in investment returns, associated with the level of uncertainty in achieving gains or losses.

Equal Risk

A concept suggesting that investments have been adjusted to have a comparable level of risk, allowing for better comparison of returns.

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its debtors and equity holders, influencing investment and financing decisions.

Use of Funds

Use of funds refers to the detailed explanation of how a company or individual intends to spend the money raised from investors, loans, or other sources.