Communicating Expectations About Honesty and Integrity Throughout a Company Includes

question 29

Multiple Choice

Communicating expectations about honesty and integrity throughout a company includes all of the following elements EXCEPT:

• A) identifying appropriate values and ethics.
• B) fraud awareness training.
• C) consistent punishment for violators.
• D) insisting that top management model appropriate behavior.

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Definitions:

Sunk Cost

A past expenditure that has already been incurred and cannot be recovered, which should not affect current or future financial decisions.

Market Value

The current price at which an asset or company can be bought or sold, determined by the supply and demand dynamics in the market.

Erosion Cost

Costs that occur when the introduction of a new project or product negatively impacts the sales and profits of existing products.