In the Context of Business Ethics, Which of the Following

question 39

Multiple Choice

In the context of business ethics, which of the following statements regarding ethics codes is true?

• A) The Sarbanes-Oxley Act requires all private companies to disclose their financial statements.
• B) The statements provided by public companies regarding their code of ethics, as required by the Sarbanes-Oxley Act, are often just for show.
• C) Ethical codes focus exclusively on employee conduct and avoid subjects such as the environment, technology, and political activity.
• D) The code of ethics is drawn up by an organization's administrative department.
• E) Executives pay most attention to their company's code of ethics when their senior managers instruct them to do so.

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Definitions:

Periodic Payments

Regular, scheduled payments made over a period of time, such as monthly rent or quarterly insurance premiums.

Borrower

An individual or entity that takes funds from a lender under the agreement to return it with interest or equity.

Bond Issue

The process by which a company or government raises funds by selling bonds to investors.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off as an expense over the bond's life.