Rose,a Financial Advisor,recommended That a Client,Maureen,purchase Shares in Mad Money

question 21

Multiple Choice

Rose,a financial advisor,recommended that a client,Maureen,purchase shares in Mad Money Mutual Fund.Relying on Rose's recommendation the client purchased 100 units.The entire stock market collapsed and the value of Mad Money Mutual Fund was reduced significantly.Maureen was surprised to learn that Rose earned a commission on each unit sold to her clients.Is Rose liable to Maureen?

• A)No,mutual fund dealers are not liable to their clients for losses incurred.
• B)No,Rose met the standards of care for a financial adviser.
• C)No,Rose's advice did not cause the loss.
• D)Yes,Rose breached her fiduciary duty by not disclosing that she received a commission on sale.
• E)Yes,Rose failed to meet the stand of care for a financial adviser by recommending a mutual fund that failed.

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Definitions:

Organizational Behavior Model

A framework used to understand and analyze how individuals behave within organizations, considering factors like structure, culture, and dynamics.

Levels of Analysis

Various perspectives from which social research can consider subjects, ranging from individual to societal scales.

Organizational Behavior

The study of how individuals and groups act within the contexts of organizations, and how these behaviors affect the performance of the organization.

Strategic OB Approach

The idea that people are the key to productivity, competitive edge, and financial success.