Code of ethics:

a. should not include guidelines for day-to-day activities.
b. should exclusively include laws and regulations set by government agencies.
c. should not be too detailed.
d. should not be designed to guide decision making.

ANSWER: c
Codes that are too detailed encourage employees to substitute rules for judgment. For instance, if employees are involved in questionable behavior, they may use the absence of a written rule as a reason to continue behaving that way, even though their conscience may be telling them to stop.

Business

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Under Rule 10b-5, which is true about insiders?

A) Employees at all levels in a company are insiders, as well as lawyers, accountants, and consultants even when hired only on a temporary basis. B) Officers and directors are insiders, but lawyers or accountants that are hired only on a temporary basis are not insiders. C) Agents hired on a temporary nonemployee basis to provide services to the company are not insiders. D) Officers and directors are insiders, but employees who are not officers are not insiders.

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