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:

Unrealized Intercompany Profits

Profits that result from transactions between companies within the same group, which are not realized until sold to an external party.

Direct Control

The ability to influence the management and policies of another entity through direct ownership or voting rights.

Indirect Control

The control over an entity achieved through another entity, such as controlling a subsidiary by owning a majority of shares in its parent company.

Equity Method

An accounting technique used by companies to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee's profit or loss.