When a stakeholder uses confidential information to gain from the sale or purchase of a stock, what ethical violation are they engaging in?
A) Whistle-blowing
B) Insider training
C) Social accommodation
D) Collusions
E) Gouging
Answer: B
Explanation: B) Insider trading is using confidential information to gain from the purchase or sale of stocks. Legally, stock can only be sold on the basis of public information available to all investors.
You might also like to view...
When the Balance Sheet columns of the work sheet are initially footed, they should be in balance
Indicate whether the statement is true or false
Generally, your trademark must not be the same as another's mark or so similar that confusion results.
Answer the following statement true (T) or false (F)
Suppose you run a simulation model several times with different order quantities. What can we infer about the the quantity that maximizes the output, the company's profit?
a. This quantity is the optimal order quantity. b. This quantity might be the optimal order quantity, but we also need to consider the company's attitude toward risk. c. This is not necessarily the optimal order quantity, because it may have produced the largest profit by luck. d. We cannot infer anything about the quantity.
Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders' equity:Issued 30,000 shares of common stock at $7 per share.Issued 20,000 shares of common stock at $8 per share.Reported a net income of $100,000.Paid dividends of $50,000.What is the ending balance in the Retained Earnings account at the end of 2021?
A. $370,000. B. $420,000. C. $100,000. D. $50,000.