Question

USUcal Hetworking QUESTION 27 Several outside groups regularly monitor the activities of Metro Chemical Corporation. These groups are interested in the firm's involvement and enforcement of their ethical and social responsibility policies. Who of the following is the least likely to be among the watchdog" groups? O The financial officer of a church with funds invested in the chemical company O A student in environmental engineering attending a local college. O The president of the union representing the workers at the chemical company. Overseers from the World Trade Organization (WTO) QUESTION 28 Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were: O acting really smart. O acting fairly. stealing from IBM engaging in insider trading.

Answer 1

QUESTION 27: Correct option is: Overseers from the World Trade Organization (WTO).

Apart from this all others i.e., the financial officer of a church with funds invested in the chemical company, A student in environmental engineering attending a local college, The president of the union representing the workers at the chemical company will be among the "watchdog" groups. They all will keep an eye on the activities of Metro Chemical Corporation & critically monitor the activities & alert the public if they find that any of the actions of the corporation goes against the public interest. Basically watchdog groups are the customers of the organization, union officials, environmentalists, investors who are socially conscious, etc.

QUESTION 28: Correct option is: engaging in insider trading.

These people will be said to be engaged in insider trading because these people were trading on the basis of non public information & had violated the fiduciary duty to the investors with which trade occurs. Insider trading is a crime when it is made to get wrongful gains. In this case also, these people have traded on this information regarding take over of Lotus Development by IBM, in order to make profits.