If a Management Accountant Confides to a Relative That His

question 136

Multiple Choice

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

• A)not violated ethical standards.
• B)violated ethical standards only if the relative owns stock in the company.
• C)violated ethical standards because the relative could stand to gain personally from that information.
• D)not violated ethical standards because the information was relayed to a family member only.

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Definitions:

Omission

The act of leaving out or excluding someone or something, either intentionally or unintentionally.

Contingent

Dependent on certain conditions or circumstances; not absolute but conditional.

Unpleasant Event

An occurrence that is disagreeable, distressing, or unwelcome, causing discomfort.

Punishment

Punishment involves imposing a penalty or negative consequence on an individual or group as a response to an undesired action or behavior, with the intent of discouraging that behavior.