Which of the Following Is a Model Code Good Practice

question 268

Multiple Choice

Which of the following is a Model Code good practice regarding the passing of names?

• A) Bank dealers should, wherever possible, give brokers prior indication of counterparties with whom they would be unwilling to do business.
• B) Brokers may divulge the names of principals prematurely to induce a counterparty to transact.
• C) Dealers should never give brokers guidance on the extent of their price differentiation across broad categories of counterparties.
• D) When a principal's name proves unacceptable to another principal, the broker is bound to divulge who refused it.

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Definitions:

Departmental Overhead Rate Method

The departmental overhead rate method is a way of allocating indirect costs to products or services based on the overhead rates of specific departments within an organization, rather than using a single company-wide rate.

Overhead

The total cost of running a business that cannot be directly attributed to the production of goods or services, similar to factory overhead but can apply to non-manufacturing costs.

Overhead Allocation Base

A measure or activity, such as direct labor hours or machine hours, used to assign overhead costs to products or services.

Direct Labor Hours

The total hours worked directly on a product or service by employees in the production process.