Which of the Following Practices Is Most Likely to Be

question 60

Multiple Choice

Which of the following practices is most likely to be viewed by both salesperson and customer as unethical?

• A)The salesperson gives the customer a cut glass paperweight with the company's name engraved on it at the end of December.
• B)A salesperson gives a potential customer tickets for front-row seats at a sold-out concert of the potential customer's favorite singer.
• C)The company throws an annual party for its clients at company headquarters that includes a buffet and open bar.
• D)At a software convention,a software sales rep takes its top five clients out for dinner at an expensive steakhouse.
• E)A railway company gives all of its vendors a 20% discount on passenger rail services.

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Definitions:

Passive Portfolio Management

An investment strategy that seeks to replicate and hold a market index or benchmarks, minimizing buying and selling to reduce costs.

Diversified Portfolios

Diversified portfolios comprise a mix of investments across various asset classes, aiming to reduce risk by not overly concentrating assets in one area.

Investment Performance

An assessment of how an investment has done over a specific period, often compared to a benchmark or standard.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, facilitating the flow of funds in the financial system.