All of the Following Statements About the Creation of a Code

question 126

Multiple Choice

All of the following statements about the creation of a code of ethics are true EXCEPT:

• A) A written code helps employees avoid confusion when determining whether their decisions are ethical.
• B) A code can be an effective internal control on behavior.
• C) The process of formulating the code facilitates discussions that ultimately create better decisions.
• D) A code helps employees identify what their firm recognizes to be acceptable business practices.
• E) A code guarantees ethical behavior among a firm's employees.

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Definitions:

Mitigate

Mitigate means to make less severe, serious, or painful; in legal and business contexts, it often refers to actions taken to reduce risks or minimize the impact of damages.

Damage

A monetary compensation that a party is legally obligated to pay to another as a result of loss or injury.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Discharge

The release or dismissal of a particular obligation, debt, or accusation, often legally sanctioned.