QUESTION 35 Melvin is the new CEO of Revin Cosmetics, and he wants to ensure tha
ID: 380467 • Letter: Q
Question
QUESTION 35
Melvin is the new CEO of Revin Cosmetics, and he wants to ensure that the company’s financial records are accurate. What should his first step be?
Train all employees to recognize fraud.
File a concern with the Federal Trade Commission.
Have an independent audit of the existing records.
Ensure that no employee has a conflict of interest.
3 points
QUESTION 36
Theo cannot pay his bills with a minimum wage job, so he accept a dangerous job as a coal miner, which is the highest-paying job he can find near where he lives. This decision represents which criticism of the voluntary risk assumption?
The pay for dangerous work does not always reflect the risks.
Theo lacked information about the jobs hazards.
The mining company lacked the ability to effectively reduce harm.
Theo’s choice was not truly free.
3 points
QUESTION 37
Julia, an employee of the U.S. government, is fired for participating in an Occupy Wall Street protest. Does Julia have options for recourse, and Why?
Julia cannot seek recourse through private venues because government workers have free speech protection only in specific circumstances.
Julia can seek recourse through the federal courts because government workers have free speech protection.
Julia cannot seek recourse through the courts because government workers are exempt from free speech protection.
Julia can seek recourse through private venues only because government workers have limited free speech protection.
3 points
QUESTION 38
April is a broker for a large investment firm. She knows that one of her clients does not pay close attention to his statements, so she conducts excessive trades in his account in order to increase her commission. This situation is an example of:
Churning
Deception
Unsuitability
Diversification
3 points
QUESTION 39
ABC Motors takes great care in testing its cars before putting them on the market. The company believes it has a responsibility to take all necessary precautions and provide a safe product. If a defective car causes an accident, which theory regarding and employer’s liability for product safety could ABC Motors use in its defense?
Strict liability
Due care
Utilitarian
Contractual
3 points
QUESTION 40
Big Donut Tires has a policy that prohibits women from working in the rubber factory due to the risk of harm to fetuses. If Susan sues Big Donut Tires, what is the likely result, and why?
Big Donut Tire does not have to change its policy because under Title VII, it is not considered discriminatory.
Big Donut Tire must change its policy because it is discriminatory toward women, per Title VII.
Big Donut Tire must change its policy and only hire women who agree to be sterilized due to fetal protection acts.
Big Donut Tire does not have to change its policy because it does not force female employees to be sterilized.
a.Train all employees to recognize fraud.
b.File a concern with the Federal Trade Commission.
c.Have an independent audit of the existing records.
d.Ensure that no employee has a conflict of interest.
Explanation / Answer
35. Answer- c. Have an independent audit of the existing records. To ensure the accuracy of financial records of the company one first needs to audit the records by themselves and try to find out the discrepancies and the errors in the records.
36. Answer- d. Theo’s choice was not truly free. The decision made Theo in spite of knowing the health hazards of working in a coal mine can be criticized that Theo’s choice was not completely free of the health facts involved in taking up that offer.
37. Answer- b. Julia can seek recourse through the federal courts because government workers have free speech protection. Every worker has a right to speech and are free for speech protection. Employers legally cannot fire employees for participating in a protest.
38. Answer- a. Churning. To make both buy and sell orders through different brokers, usually in large quantities, to create the impression ofincreased interest in a security and thereby raise its price. An investor churns if he/she has a long position on thesecurity and wishes to sell it at an artificially high price. Churning is a form of manipulation, and is illegal under the Securities Exchange Act of 1934.