- CFA Exams
- CFA Exam: Dec. 2020 Level 1
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 2. Standard I (B) Independence and Objectivity
CFA Practice Question
There are 361 practice questions for this study session.
A. Beneficiaries of a pension fund are an analyst's primary responsibility, not the fund sponsors.
B. Do not engage in conduct involving dishonesty, fraud, deceit, and misrepresentations.
C. Limit gifts, pay your own travel costs, and disclose all special corporate relationships.
User Contributed Comments 10You need to log in first to add your comment.
shouldn't the answer be all choices???
No since A and B are not related.
It's about INDEPENDENCE.
Tricky question. Every line in the question must be read carefully. Key word: "...influencing your independence...".
Standard II B: "...use reasonable care... maintain independence... ...not offer, solicit, accept any gift, benefit... could be expected to compromise... independence and objectivity."
The answers listed in A and B are not related to the "independence concept" and are therefore not eligible.
so where does a and b fall under?
A under duties to clients and B under profesionalism. I think.
tricky question...I also thought that all three were correct but upon closer reading, I realized that I had flubbed it big time!
Read the code Ib.A is not related to question and option b is Id. so C is the correct answer
key words here i think is Best Course of action. If you have the option to pay for it yourself that would likely be the most ethical way of completing the valuation
Doesn't the standard stipulate you shouldn't be accepting gifts? This says LIMIT gifts? That's what threw me...