Dora Is an Investment Advisor Who Is Also Part Owner

question 50

Multiple Choice

Dora is an investment advisor who is also part owner of a new business.Without disclosing her ownership,Dora has recommended that clients purchase shares in her new business.Which of the following wrongs has Dora likely committed?

• A) breach of duty of agency
• B) breach of fiduciary duty
• C) breach of authority
• D) estoppel

Understand the implications of hardwired heuristics on the difficulty of changing behavior through information alone.

Grasp the concept of mental accounting and its influence on financial decision-making.

Understand the impact of social factors, such as the threat of rejection, on economic decisions.

Comprehend the concept of time inconsistency and its implications on decision-making.

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Definitions:

Actual Price Level

The general level of prices for goods and services in the economy at a specific point in time.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Recessionary Gap

The difference between the actual output of an economy and its potential output, occurring when the economy is underperforming.

Expansionary Gap

A situation where the actual output in an economy exceeds the potential output, often leading to inflation.