An Officer of a Firm Who Is a Majority Owner

question 54

Multiple Choice

An officer of a firm who is a majority owner in a competing firm will probably be subject to

• A) an IRS audit.
• B) a conflict of interest with his stockholders.
• C) arbitrage profit returns to the SEC.
• D) an FBI investigation.

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Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service to different consumers, often based on factors like location, age, or purchasing history.

Practices

Routine actions or procedures followed by individuals or organizations in their professional or daily activities.

Goods

Tangible products or items that are produced or manufactured for sale and consumption.

Robinson-Patman Act

A United States federal law that aims to prevent anticompetitive practices by producers, specifically price discrimination.