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:

Metal Tools

Implements made primarily or entirely of metal, used for a wide range of purposes, including construction, artwork, and daily activities, marking a significant technological advancement in human history.

Paleolithic Paintings

Prehistoric cave paintings created during the Paleolithic era, depicting animals, human figures, and abstract signs.

Sea Creatures

A broad term for animals that live in the water, particularly in oceanic and sea environments, including fish, cephalopods, and marine mammals.

Çatal Höyük

A Neolithic and Chalcolithic archaeological site in southern Anatolia, Turkey, known for its well-preserved buildings and wall paintings that provide insight into early human urban life.