Ask Question
BusinessBusiness
28 September, 21:43

The manager of a discretionary account places client funds in a suitable investment because it provides a higher commission than alternatives that are also suitable for the client. The selected investment subsequently appreciates in value. This investment manager did not:

a. place the client's interests first.

b. face an ethical dilemma because the investment was profitable.

c. have a conflict of interest because the investment was suitable for the client.

+3
Answers (2)
  1. 28 September, 22:36
    0
    have a conflict of interest because the investment was suitable for the client.

    Explanation:

    A manager as an agent of the client is supposed to always act in the interest of his principal.

    In this scenario the manager places client funds in a suitable investment because it provides a higher commission than alternatives that are also suitable for the client. The selected investment subsequently appreciates in value.

    The manager acted in the interest of the client and this resulted in return on investment
  2. 29 September, 00:56
    0
    Answer: c. have a conflict of interest because the investment was suitable for the client.

    Explanation: A conflict of interest situation arises when an individual (the manager of a discretionary account in this instance) has competing interests or loyalties because of their duties to more than one person or organization and serving one interest could adversely affect a duty owed to make decisions for the benefit of a third party (the client). The manager did not have a conflict of interest because the investment was suitable for the client. However, a manager who knowingly places clients funds in an investment which are not in their best interests, but which earn the manager a bigger commission, would be guilty of conflict of interest.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The manager of a discretionary account places client funds in a suitable investment because it provides a higher commission than ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Gantner Company had the following department information about physical units and percentage of completion: Physical Units Completed and transferred out 150,000 Work in process, May 31 (40%) 50,000 If materials are added at the beginning of the
Answers (1)
World-class businesses use which of these systems to integrate all of a company's worldwide functions, departments, anddata into a single system? a. Cost standardsb. Enterprise resource planningc Just-in-time managementd.
Answers (1)
Organizations cannot be successful if they do not pay attention to the forces in their external environment True or false
Answers (1)
Ou are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast.
Answers (1)
Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense).
Answers (1)
New Questions in Business
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells blank - be sure to enter "0" wherever required.) A $25,000 cash gift from her parents.
Answers (1)
Analysis of daily output of a factory during a 8-hour shift shows that the hourly number of units y produced after t hours of production is
Answers (1)
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent.
Answers (1)
Which strategy is most likely to reduce and prevent violence in our society? stop-and-frisk policing three-strikes-and-you're-out laws school anti-bullying awareness efforts reducing nighttime curfews
Answers (2)
Home » Business » The manager of a discretionary account places client funds in a suitable investment because it provides a higher commission than alternatives that are also suitable for the client. The selected investment subsequently appreciates in value.
Sign Up Forgot Password?