The Moral Values and Behavioral Standards Business People Employ Daily

question 104

Multiple Choice

The moral values and behavioral standards business people employ daily when making decisions and solving problems are known as:

• A)social responsibility.
• B)business ethics.
• C)the corporate culture.
• D)the company policies and procedures.

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Definitions:

Passive Management

Buying a diversified portfolio, often a broad-based market index, without attempting to identify mispriced securities.

Index Fund

A mutual fund holding shares in proportion to their representation in a market index such as the S&P 500.

Investment Club

A group of individuals who pool their money to make investments, often operating under a democratic structure to make decisions.

EMH

The Efficient Market Hypothesis, a theory that suggests all known information is already reflected in stock prices, and therefore, beating the market consistently through stock selection or market timing is unlikely.