Which of the Following Statements Regarding Ethics and Decision Making

question 13

Multiple Choice

Which of the following statements regarding ethics and decision making is true?

• A)An ethical framework is preferable but not essential in making good decisions.
• B)Ethical theories are preferable but not essential in making good decisions.
• C)In most cases decisions based on intuition and personal feelings will achieve better outcomes than those based on an ethical framework.
• D)Ethics is very complex.

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Definitions:

Material Misstatements

Significant inaccuracies or omissions in financial statements that could influence the decision-making of users of those statements.

Section 11

A specific provision of a law or regulation, often requiring context (such as a specific act or statute) to define fully.

Privity of Contract

A legal principle stating that contracts are private agreements between the parties who have entered into them, and typically, only those parties have the right to enforce or challenge the contract in court.

Rule 505

Part of Regulation D of the SEC, which provided guidelines for limited offerings and sales of securities without full registration, though it is now superseded by changes in securities laws.