Arthur and Nicole Are Having an Argument Over the Creation

question 22

Multiple Choice

Arthur and Nicole are having an argument over the creation of a code of ethics for an organization.Arthur is of the view that it would be good for organizations to follow advice from the Institute of Business Ethics before creating a code of ethics,while Nicole disagrees with him.Which of the following advices would an organization follow if it agrees with Arthur?

• A) The organization would develop its own model rather than picking a well-tested model.
• B) The organization would put the code on the organization's website rather than sending it to all employees,suppliers,and others.
• C) The organization would conduct an extensive survey involving every employee rather than getting endorsement from the board for the code of ethics.
• D) The organization would determine the topics on which employees require guidance.

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Definitions:

Rate Of Return

The gain or loss of an investment over a certain period, expressed as a percentage of the investment's initial cost.

Npvgo

Net Present Value of Growth Opportunities; a measure evaluating the profitability of future investments by comparing their present value to the initial outlay.

Required Return

The minimum annual return rate that incites people or companies to allocate resources to a particular investment or project.

Constant Growth

A model in finance that assumes a stock’s dividends will continue to grow at a uniform rate indefinitely, used to estimate the stock's current value.