Get stuck in these 4 ethics Q. Don't know what can be the ri tour, travel, management, corporate, research

pogo

Hej guys
I did some ethics questions and did wrong in these four. Would you please help me to know which choices are right, with a bief explanation? So many thanks in advance
1) As part of his responsibilities as a research analyst, Gonzalez, along with several other analysts, takes a tour of the corporate headquarters and meets with management of a large electronics company in Asia. The company pays for the travel and accommodations of all the analysts participating in the 2-day tour and hosts a dinner, a golf tournament, and a sightseeing excursion for them as part of the trip. Under these circumstances, Gonzalez:
A: May attend the dinner and participate in the golf tournament and sight-seeing but not accept reimbursement for travel and accommodations.
B:Should not accept reimbursement for his travel and accommodation expenses and should not attend the dinner or participate in the golf tournament as doing so may impinge on Gonzalez’s independence and objectivity.
C: May accept the reimbursement for the travel and accommodations because the firm paid for all the analysts and did not show favoritism to Gonzalez.
D: May attend the dinner and participate in the golf-tournament and sight-seeing excursion because Gonzalez considers these modest “perks” acceptable in the normal course of business.
I chosed choice A but that was wrong.
2)Which of the following statements regarding research reports is/are CORRECT according to the Standards of Practice Handbook?
I. Members should outline known limitations of their analysis.
II. Reports should be supported by background and supporting information, and this information should be available to interested parties.
III. Members must include all relevant factors in research reports.
A:I and III.
B: II and III.
C: I, II, and III.
D:I and II.
I chosed choice C, but that wasn’t the right choice.
3)Which of the following statements regarding supervisory responsibility is/are CORRECT under the Code and Standards:
I. CFA Institute members exercise reasonable supervision by establishing and implementing written compliance procedures.
II. Once compliance procedures are established, CFA Institute members must take reasonable steps to ensure that they are disseminated and enforced.
III. Misconduct by a member’s subordinate automatically results in a violation of the Code and Standards by the member for failing to properly supervise the employee.
A: I and II.
B: I, II, and III.
C: II and III.
D: I only.
I chosed choice B, but that wasn’t the right choice.
4)When a corporate issuer, seeking to increase their visibility with potential investors, hires an analyst to write research on their company, the analyst must do all of the following EXCEPT:
A: Strictly limit the type of compensation received by the company so that the compensation is not based on the content or recommendation contained in the report.
B:Allow the company that paid for the report to review the analysis and recommendations.
C:Engage in thorough, independent and unbiased analysis of the company.
Disclose in the report that the analyst is being paid by the company to write the report.

dandman

Hi Guys IS there any one who can answer them

Kapie

I got the first one wrong as well, but I believe that
2 - D
3 - A
4 - B

jbaldyga

B
D
A
B

jcole21

Guys. Here is my advice. (I am L2) The most strict answer is usually wrong. KNOW THAT
nitoha Wrote:
——————————————————-
> 1) As part of his responsibilities as a research
> analyst, Gonzalez, along with several other
> analysts, takes a tour of the corporate
> headquarters and meets with management of a large
> electronics company in Asia. The company pays for
> the travel and accommodations of all the analysts
> participating in the 2-day tour and hosts a
> dinner, a golf tournament, and a sightseeing
> excursion for them as part of the trip. Under
> these circumstances, Gonzalez:
>
> A: May attend the dinner and participate in the
> golf tournament and sight-seeing but not accept
> reimbursement for travel and accommodations.
>
> B:Should not accept reimbursement for his travel
> and accommodation expenses and should not attend
> the dinner or participate in the golf tournament
> as doing so may impinge on Gonzalez’s independence
> and objectivity.
>
> C: May accept the reimbursement for the travel and
> accommodations because the firm paid for all the
> analysts and did not show favoritism to Gonzalez.
>
> D: May attend the dinner and participate in the
> golf-tournament and sight-seeing excursion because
> Gonzalez considers these modest “perks” acceptable
> in the normal course of business.
>
> I chosed choice A but that was wrong.
B That golf tourney is too elegant. Forget it, don’t go.
> 2)Which of the following statements regarding
> research reports is/are CORRECT according to the
> Standards of Practice Handbook?
>
> I. Members should outline known limitations
> of their analysis.
> II. Reports should be supported by background
> and supporting information, and this information
> should be available to interested parties.
> III. Members must include all relevant
> factors in research reports.
>
> A:I and III.
>
> B: II and III.
>
> C: I, II, and III.
>
> D:I and II.
>
> I chosed choice C, but that wasn’t the right
> choice
D - III is way to strict.
>
> 3)Which of the following statements regarding
> supervisory responsibility is/are CORRECT under
> the Code and Standards:
>
> I. CFA Institute members exercise reasonable
> supervision by establishing and implementing
> written compliance procedures.
> II. Once compliance procedures are
> established, CFA Institute members must take
> reasonable steps to ensure that they are
> disseminated and enforced.
> III. Misconduct by a member’s subordinate
> automatically results in a violation of the Code
> and Standards by the member for failing to
> properly supervise the employee.
>
> A: I and II.
>
> B: I, II, and III.
>
> C: II and III.
>
> D: I only.
>
> I chosed choice B, but that wasn’t the right
> choice.
A - III is way to strict.
> 4)When a corporate issuer, seeking to increase
> their visibility with potential investors, hires
> an analyst to write research on their company, the
> analyst must do all of the following EXCEPT:
>
> A: Strictly limit the type of compensation
> received by the company so that the compensation
> is not based on the content or recommendation
> contained in the report.
>
> B:Allow the company that paid for the report to
> review the analysis and recommendations.
>
> C:Engage in thorough, independent and unbiased
> analysis of the company.
>
> Disclose in the report that the analyst is being
> paid by the company to write the report.
B. They can’t do that.

himanshumh

Thanks guys

tango_gs

I think they are:
1.) B or C. The reason I am wavering is because they are traveling to Asia, so I think it might be acceptable to accept that travel and accommodations. Typically you should refuse to accept reimbursements, but in this case it might be acceptable. As for the golf and sightseeing and all that jazz, he should pay for that himself and refuse their company covering it.
2.) B. I don’t think you need to outline why your analysis sucks….
3.) A. It is not an automatic violation if one of your employees breaks a rule or behaves inappropriately. You cannot really control all possible outcomes of other people’s actions. What you can control is your implementation of policies and supervision. As long as you take appropriate steps to remedy the problem caused by the employee, you are in the clear
4.) B. You do not want the company paying you to have any influence on your report that would compromise the integrity of it. A, C, and D are all things that you need to do as an analyst to abide by the Code of Standards.
Good luck buddy!