Question #31
Reading: Reading 42.1 Standards of Professional Conduct Guidance for Standards I
PDF File: Reading 42.1 Standards of Professional Conduct Guidance for Standards I.pdf
Page: 13
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
Rachel Young, CFA, is making preparations to start a competitive business before terminating her relationship with her employer, a large money management company. Young has used excerpts from research reports by others with only a slight change in wording without acknowledging the source. Which of these actions violate the Code and Standards?
Answer Choices:
A. Only one of these actions
B. Both of these actions
C. Neither of these actions
Explanation
By using excerpts from research reports by others with only a slight change in wording
without acknowledging the source, Young committed plagiarism and violated Standard I(C)
Misrepresentation. Young did not violate Standard IV(A) Loyalty because preparations to
begin an independent business are permitted provided that they do not breach Young's
duty of loyalty to her employer. Actions that would violate Standard IV(A) include soliciting
clients or taking records or files while still working for the current employer.
(Module 42.2, LOS 42: I(C))