A code of ethics becomes increasingly appropriate and necessary as a small business
A)expands its credit sales and acquires more customers who buy on credit.
B)begins to market products in other countries.
C)grows larger,with a consequent lessening of the owner's personal influence.
D)increases borrowing to the extent that one-third of its assets are financed by borrowing.

Question

Quizplus · Accepted Answer

As a small business grows larger, the owner's personal influence decreases and there is a greater potential for ethical lapses to occur. A code of ethics can help establish a clear set of standards for employee behavior and decision-making, ensuring that the business operates ethically even as it becomes more complex. Expanding credit sales, marketing in other countries, or increased borrowing may all have ethical implications, but they do not necessarily make a code of ethics more appropriate or necessary.

A Code of Ethics Becomes Increasingly Appropriate and Necessary as a Small