Sirhan Is President of a Medium-Sized Bank

question 72

Multiple Choice

Sirhan is president of a medium-sized bank. What can he do to lessen the chances of employees or board members taking part in insider trading?

• A) Forbid managers and executives from having access to private information.
• B) Forbid board members from having access to private information.
• C) Work with analysts and customer-facing employees to root out information asymmetry.
• D) Create a strict code of ethics and explain that inside traders will be fired.

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Definitions:

Re-creation

The act of recreating something, either for the purpose of restoration or as a means of producing something new based on an existing model or design.

Nadler-Tushman Model

A framework for diagnosing organizational behavior that focuses on the dynamics between the organization's structure, tasks, corporate strategies, and the external environment.

Organizational Change

The process through which a company or organization changes its structure, strategies, operational methods, technologies, or organizational culture.

Adaptation

The process by which an organism or organization adjusts to changes in its environment or internal processes.