An officer of a firm who is a majority owner in a competing firm will probably be subject to
A) an IRS audit.
B) a conflict of interest with his/her stockholders.
C) arbitrage profit returns to the SEC.
D) an FBI investigation.

Question

Quizplus · Accepted Answer

As a majority owner in a competing firm, the officer would have a conflict of interest with his/her own firm's stockholders. This would raise ethical and legal concerns and potentially lead to legal action or loss of credibility for the officer and the firm. The other options (IRS audit, arbitrage profit returns, FBI investigation) are not necessarily related to this specific situation.

An Officer of a Firm Who Is a Majority Owner