n NISM Certifications
X NISM Series X
Medium

Is following only the legal requirements sufficient for ethical business conduct?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Yes, as laws define ethics

  2. No, because ethics involves morals and values

    Correct answer

  3. C

    No, as laws are complex and can be missed

  4. D

    Yes, because laws are final benchmarks

Why this is the answer

Ethics encompasses moral principles beyond legal compliance, guiding behavior on a broader moral spectrum.

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