Future Business Leaders of America (FBLA) Business Management Practice Test

Which area is generally covered by a code of ethics in business?

1. Pricing, billing, and contracting practices

2. Marketing strategies

3. Human resource management

4. Financial forecasting

The correct answer is: Pricing, billing, and contracting practices

A code of ethics in business typically includes guidelines and principles regarding integrity and fairness in various business practices. Pricing, billing, and contracting practices fall under this umbrella because ethical guidelines help ensure that businesses engage in fair pricing strategies, transparent billing, and honest contracting. These practices are crucial for maintaining trust with customers, suppliers, and partners. Having a code of ethics that specifically addresses these areas helps prevent deceptive practices and promotes accountability. It encourages businesses to uphold standards that protect stakeholders' interests and fosters a positive reputation in the marketplace. While the other areas listed—marketing strategies, human resource management, and financial forecasting—may also have ethical considerations, the aspects of pricing, billing, and contracting directly impact transactional relationships and are often scrutinized for ethical compliance.