Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved. As it relates to the topic of this chapter, which of
the following best describes Tina's actions?
A. Tina has sacrificed a thousand dollars more than she needed to pay for the property.
B. Tina has no ethical issues because the seller received more money in the transaction than the listing price.
C. Tina has knowingly engaged in a conflict of interest.
D. Tina helped her client enter a transaction in which everyone benefitted.
Answer: C
You might also like to view...
The equality of debits and credits in a trial balance means that all entries were correctly posted to the accounts
a. True b. False Indicate whether the statement is true or false
The recency effect
A. indicates that the important points should be made early. B. states that the first item in a long list of items is the one most likely to be remembered. C. states the tendency for the last item presented to be the best remembered. D. should be used when the topics are familiar, interesting, or controversial to the receiver.
Which marketing orientation focuses on creating demand and moving product inventory?
A) production orientation B) social responsibility orientation C) consumer orientation D) sales orientation E) relationship orientation
If bonds payable are not callable, the issuing corporation
A) cannot repurchase them before maturity B) can repurchase them in the open market C) must get special permission from the SEC to repurchase them D) is more likely to repurchase them if the interest rates increase