The Major Difficulty in Most Insider-Trading Cases Has Been

question 94

Multiple Choice

The major difficulty in most insider-trading cases has been:

• A) that lenient judges have simply released the guilty individuals.
• B) that insider trading,even though illegal,actually serves a beneficial economic and financial purpose.
• C) that inside trades have not been legally well defined.
• D) inside trades actually have a beneficial effect on the wealth of all shareholders.

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Definitions:

Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected to produce a certain level of output.

Standard Cost System

An accounting method that uses cost estimates for labor, materials, and overhead to assign costs to products, facilitating variance analysis between expected and actual costs.

Actual Results

The real financial or operational outputs of a business, as opposed to projections or estimates.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead allocated, based on activity level.