Which of the Following Statements Best Describes Why the Profession

question 44

Multiple Choice

Which of the following statements best describes why the profession of certified public accountants has deemed it essential to promulgate a code of professional conduct and to establish a mechanism for enforcing observation of the code?

• A)A distinguishing mark of a profession is its acceptance of responsibility to the public.
• B)A prerequisite to success is the establishment of an ethical code that stresses primarily the professional's responsibility to clients and colleagues.
• C)A requirement of most state laws calls for the profession to establish a code of ethics.
• D)An essential means of self-protection for the profession is the establishment of flexible ethical standards by the professions.

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Definitions:

Short Run

A timeframe in economics during which at least one input (like plant size) is fixed and cannot be changed, focusing on immediate operational decisions.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes.

Marginal Revenue Curve

A graph that shows how marginal revenue varies as the quantity of output changes, typically downward sloping for firms in competitive markets.

Perfect Competitor

A market structure in which numerous small firms compete against each other with identical products, no single firm can influence the market price; all firms are price takers.