Question #26
Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV
PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf
Page: 11
Status: Correct
Correct Answer: A
Question
Which of the following statements is most correct concerning a member's obligation to his or her employer under the Code and Standards?
Answer Choices:
A. Members are prohibited from undertaking independent practice in competition with their employer
B. Members are prohibited from making arrangements or preparations to go into competitive business before terminating their relationship with their employer
C. Consent from the employer is necessary to permit independent practice that could result in compensation or other benefits in competition with the member's employer
Explanation
There is no blanket prohibition against independent practice in competition with a
member's employer. The member must obtain permission from the employer. Members
may make preparations to go into a competitive business, but may not solicit clients of the
employer as long as members are still employed by the employer.
(Module 42.7, LOS 42: IV(A))