Which of the following is the BEST way to ensure all enterprise employees understand the corporate code of business conduct?

Scheduled and random compliance audits are important for monitoring adherence but do not proactively ensure initial understanding of the code.

Mandated annual training with an exam ensures active engagement with the content, provides a structured learning environment, and verifies comprehension through assessment. This approach goes beyond passive acknowledgment, promoting retention and demonstrating a serious organizational commitment to ethical conduct by requiring measurable understanding.

Requiring documentation and reporting of external business activities is a control mechanism for specific scenarios, not a comprehensive method to ensure general understanding of the entire code of conduct.

Distributing a copy of the code and requiring a signature only confirms receipt and acknowledgment, not actual understanding or comprehension of its principles and rules.