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When Developing an Ethical Culture, There Has to Be A(n)

question 3

Multiple Choice

When developing an ethical culture, there has to be a(n) _____ element because every organization has employees that will try to take advantage if there is an opportunity for misconduct.

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which provided guidelines for limited offerings and sales of securities without full registration, though it is now superseded by changes in securities laws.