Cindy, a College Secretary, Discarded Transcript Updates Instead of Filing

question 66

Multiple Choice

Cindy, a college secretary, discarded transcript updates instead of filing them.David, the dean, spoke to Cindy this morning about the quality and timing issues that her actions had caused.Cindy apologized and said she had no idea that a semester's worth of information mattered.She vaguely remembered filing transcripts about 6 months ago, right after she started this job, and discarding unofficial updates at that time.She told David that this wouldn't happen again, but that he should have done a better job of training her about what paperwork was important.Her work was usually accurate, but there were several similar instances.David had only issued verbal warnings to this point.What should David do?

• A)David should consult the corporate attorney about firing Cindy.
• B)Nothing.The issue is resolved.
• C)Issue a written verbal warning outlining the solution to the problem and any follow-up action that will be taken if the problem recurs.
• D)David should suspend Cindy from work without pay for two to three weeks.
• E)David should fire Cindy.

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Definitions:

Full Disclosure

Full disclosure is a policy requiring companies to provide all relevant, material information about their operations, financial condition, and management to investors and stakeholders.

SEC

The United States Securities and Exchange Commission is a federal body tasked with overseeing the securities market and safeguarding investors.

Fair Price

The equilibrium price for a good or service in the market where the quantity supplied equals the quantity demanded.

Exercise Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.