Codes of Ethical Conduct Have Several Limitations

question 228

Multiple Choice

Codes of ethical conduct have several limitations. Which of the following is not one of these limitations?

• A) Codes of ethical conduct cannot guarantee ethical conduct.
• B) The value of an ethics code relies on the organization's underlying human resource foundation.
• C) Ethical codes are not useful is large, complex organizations.
• D) Ethical codes are not replacements for hiring people of integrity.
• E) Ethical codes cannot replace leadership that is committed to being positive role models for the rest of the organization's members.

---

Definitions:

Gross Profit

The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.

Merchandise Sold

Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.

Cost of Goods Sold

Directly incurred costs associated with the production of a company’s goods for sale, comprising material and labor expenses.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and the shipping cost from the moment the goods leave the seller's premises.