In All Dealing Conversations, the Model Code Strongly Recommends

question 206

Multiple Choice

In all dealing conversations, the Model Code strongly recommends:

• A) Dealers stick to market terminology in order to avoid the impression that they are offering an advisory or fiduciary role.
• B) Dealers clarity what is being proposed rather than using any terminology that could be misinterpreted.
• C) Dealers restrict themselves to terminology listed and explained in Chapter 11 of the Model Code.
• D) Dealers define complex terminology in the confirmation of a deal.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production process of a product and are clearly identified as part of the finished product.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production process, such as maintenance, supervision, and utilities.

Operating Expenses

Costs related to the normal operations of a business, such as salaries, rent, and utilities, but excluding cost of goods sold.

Property Taxes

Taxes assessed on real estate by the government, typically based on the property's value.