What Is the Function of a Professional Code of Ethics

question 21

Multiple Choice

What is the function of a professional code of ethics?

• A) to outline clients' rights
• B) to provide a set of professional practice rules
• C) to meet legal requirements
• D) to define the ethical expectations of a profession

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Definitions:

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns.

Time Periods

Distinct intervals of time used for financial reporting, planning, and forecasting, which can range from short-term to long-term durations.

Present Value

Refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

An investment vehicle that offers a steady flow of income to an individual, commonly utilized in retirement planning strategies.