What Is the Difference Between a Code of Ethics and a Code

question 36

Multiple Choice

What is the difference between a code of ethics and a code of conduct? ​

• A)​A code of conduct consists of general statements that serve as principles and as the basis for rules of conduct.
• B)​A code of ethics consists of formal statements that describe what an organization expects of its employees.
• C)​A code of ethics is more comprehensive than a code of conduct.
• D)​A code of conduct serves the general public.
• E)​A code of ethics tends to elicit less debate about specific actions.

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Definitions:

Discretionary Investment Power

The authority granted to manage and make investment decisions on behalf of someone else, typically within specified parameters.

Conservative Debt Securities

Investments in fixed-income securities that are considered low risk, typically issued by government entities or stable corporations.

Prudent Person

A legal standard used to represent the hypothetical individual who exercises average care, skill, and judgment in decision-making, serving as a comparative standard in legal and financial fields.

Discretionary Investment Power

The authority given to a person or entity to make investment decisions on behalf of another without needing express consent for each decision.