Almost Every Organization Includes Values and Ethics as Part of Their

question 106

Multiple Choice

Almost every organization includes values and ethics as part of their mission statement and includes a set of explicit rules in the company's employee handbook.Once the rules are in place there must be:

• A) a system of controls that rewards appropriate behavior and punishes inappropriate behavior.
• B) a Web site where employees can vent their frustration over lapses in ethical behavior.
• C) weekly reminder seminars to enforce guidelines.
• D) commitment from customers to accept these rules.
• E) all of these.

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Definitions:

Pork Bellies

Futures contracts that were historically traded on the commodity exchanges, representing 40,000 pounds of frozen, trimmed bellies of hogs, which are used to make bacon.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to continue holding a position, set by a brokerage to prevent excessive borrowing based on volatile market values.

Margin Call

A margin call occurs when the value of an investor's margin account falls below the broker's required minimum level, prompting the investor to either deposit more funds or sell assets to cover the shortfall.

Margin Deposit

A deposit required by a broker from a client when they borrow from the broker to buy securities, serving as collateral for the loan.