CTP · Question #155
(Topic 2) A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year's and would be viewed as…
The correct answer is C. exposure avoidance. A company determines that no combination of risk control or financing techniques will produce an adequate, risk-adjusted rate of return on manufacturing a new product. It decides to discontinue the product line. This is an example of:
Question
- (Topic 2)
A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year’s and would be viewed as positive to the investment community. He casually mentions to a relative that now would be a good time to buy the stock of Company XYZ. Which section of the treasury code of ethics would typically be violated by such a disclosure?
Options
- Acapacity error.
- Bindemnification.
- Cexposure avoidance.
- Dconsequential damages.
How the community answered
(16 responses)- A13% (2)
- B6% (1)
- C75% (12)
- D6% (1)
Explanation
A company determines that no combination of risk control or financing techniques will produce an adequate, risk-adjusted rate of return on manufacturing a new product. It decides to discontinue the product line. This is an example of:
Topics
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