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NEW QUESTION: 1
Which of the following is NOT an objective of a data collection program?
Response:
A. To demonstrate reliability to customers.
B. To validate vendor supplied items.
C. To produce reliability reports.
D. To demonstrate internal reliability.
Answer: C

NEW QUESTION: 2
Standard IV (B.4) deals with ________.
A. Performance Presentation
B. Priority of Transactions
C. Disclosure of Referral Fees
D. Preservation of Confidentiality
E. Prohibition against Use of Material Nonpublic Information
F. Disclosure of Conflicts to Clients and Prospects
G. None of these answers
H. Prohibition against Misrepresentation
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Standard IV (B.4) deals with the priority of transactions of clients and employers over transactions in investments in which the member is the beneficial owner.

NEW QUESTION: 3
K plc is a large listed company in the retail industry. It has recently appointed T as a non-executive director. T has never had any previous involvement with K plc but is well known to K's Chief Executive P because T is the Managing Director of K plc's largest supplier.
K has recently expanded into Asia. Doubts about the wisdom of the move have been expressed in the financial press with some journalists commenting that it has exposed K plc to higher degrees of risk than previously.
The move had been approved by the Risk Committee which consists of four Non-Executive Directors (NEDs) all of whom have significant experience in business.
K plc does not have a Nominations Committee. Nominations to the Board are usually proposed by P and generally agreed by the other directors.
In relation to the above scenario which of the following comments is valid?
A. K plc is in line with best practice as it only has NEDs on its Risk Committee.
B. There is no possible conflict of interest in relation to T's position as a NED and as Managing Director of a supplier company since, in both roles, he would clearly want K plc to prosper.
C. The absence of a Nominations Committee exposes K plc to the risk that the Chief Executive may have unfettered power.
D. The Risk Committee should have rejected the proposal to enter the Asian market merely because it exposed K to greater risk than the other markets in which it operates.
Answer: C

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