Kanesa Wallop works for an investment research firm. She is preparing a research report on Maybe Industries, which offers her a trip to Europe as long as she does not give Maybe Industries a 'sell' rating. Kanesa gives Maybe a 'hold' rating and accepts the trip to Europe which she does not disclose to her clients. Kanesa believes she has assessed Maybe objectively and not let the inducement of the European trip affect her rating.

A. Kanesa is not in violation of the Standards as she believes that she has been objective.
B. Kanesa is not in violation of the Standards as she has given Maybe a 'hold' rating rather than the more positive 'buy' rating.
C. Kanesa is in violation of the Standards as she has accepted inducements that could compromise her objectivity.

Correct Answer: C

Doesn't matter what Kanesa believes, she cannot accept gifts that would create a conflict of interest, nor can she withhold this information from her employer.