A Broker Has Transferred Stock Held in His Own Name

question 18

Multiple Choice

A broker has transferred stock held in his own name in order to fill a request from a client and made a profit in doing so.Which of the following would a business law professor most likely indicate to be a valid statement with respect to these circumstances?

• A) The broker has refrained from using his position for personal profit.
• B) The broker has a conflict of interest requiring disclosure and consent.
• C) The broker breached his duty of confidentiality.
• D) The broker is completely compliant with his fiduciary duties.

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Definitions:

Universal Principles of Management

Universal principles of management are foundational theories and practices believed to be applicable across various organizational types and management situations.

Specialization of Labor

The division of labor where each worker or group of workers focuses on a specific task or job to increase efficiency and expertise.

Division of Work

The allocation of different tasks and responsibilities to various members or groups within an organization to increase efficiency.

Information Overload

Occurs when an individual is exposed to more information than they can process, leading to overwhelm or decision paralysis.