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 stockholders.
C) arbitrage profit returns to the SEC.
D) an FBI investigation.

Question

Quizplus · Accepted Answer

An officer owning a majority in a competing firm represents a clear conflict of interest with his current firm's stockholders. As a result, the individual may face legal or ethical consequences, such as legal action or removal from their position. However, it is not likely to result in an IRS audit, arbitrage profit returns to the SEC, or an FBI investigation unless there are serious allegations of fraud or other illegal activities involved.

An Officer of a Firm Who Is a Majority Owner