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NEW QUESTION: 1
Cornelius is a portfolio manager with Apex Investments, an investment advisory firm. Cornelius has, over the years, developed a special symbiotic relationship with Mike Milken, the owner of Milk 'em, Inc., a small brokerage firm. Cornelius puts subtle pressure on the trading desk at Apex to execute its trades through Milk 'em, thus generating brokerage revenue for Mike. In return, Mike recommends the services of Apex Investments to many of its clients. This arrangement is not disclosed to either the senior management at Apex nor to any of the clients. It has been observed by many at Apex Investments that the commissions charged by Milk 'em are 10-15% higher than those by other brokers. However, Cornelius has justified the higher costs by pointing to the extra revenue-flow from Milk 'em. Cornelius has:
I. not violated any AIMR standards.
II. violated Standard III (C) - Disclosure of Conflicts to Employer.
III. violated Standard IV (B.8) - Disclosure of Referral Fees.
IV. violated Standard IV (B.1) - Fiduciary Duties.
A. II and IV only
B. II, III and IV only
C. I only
D. II and III only
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Cornelius is clearly in a situation representing a conflict of interests. His arrangement and non-disclosure of the arrangement are unfair to the current clients of Apex and potential clients recommended by Milk 'em.
They represent a violation of his fiduciary duties to the clients. By not informing senior management at Apex about the arrangement, he has also violated Standard III (B) - Disclosure of Conflicts to Employer.
NEW QUESTION: 2
An internal review of a web-based application system finds the ability to gain access to all employees' accounts by changing the employee's ID on the URL used for accessing the account. The vulnerability identified is:
A. cross-site scripting.
B. unvalidated input.
C. broken authentication.
D. structured query language (SQL) injection.
Answer: C
Explanation:
Explanation
The authentication process is broken because, although the session is valid, the application should reauthenticate when the input parameters are changed. The review provided valid employee IDs, and valid input was processed. The problem here is the lack of reauthentication when the input parameters are changed.
Cross-site scripting is not the problem in this case since the attack is not transferred to any other user's browser to obtain the output. Structured query language (SQL) injection is not a problem since input is provided as a valid employee ID and no SQL queries are injected to provide the output.
NEW QUESTION: 3
A. 5 MHz
B. 22 MHz
C. 10 MHz
D. 20 MHz
Answer: B
NEW QUESTION: 4
A multinational company with operations in several parts within EU and outside EU, involves international
data transfer of both its employees and customers. In some of its EU branches, which are relatively larger
in size, the organization has a works council. Most of the data transferred is personal, and some of the
data that the organization collects is sensitive in nature, the processing of some of which is also
outsourced to its branches in Asian countries.
For the outsourced work of its customers' data processing, in order to initiate data transfer to another
organizations outside EU, which is the most appropriate among the following?
A. The vendor (data importer) in the third country, and not the exporter is responsible to put in place
suitable model contractual clauses, and hence the exporter does not need to take any action.
B. The data importer need to notify about the transfer to data protection commissioner in the destination
country and exporter need to similarly notify in the EU country of origin
C. The data exporter needs to initiate model contractual clauses after obtaining approvals from data
protection commissioner and have the vendor be a signatory on the same as data importer
D. Since the data is processed by the vendor outside the EU, the EU directive does not apply and hence
there are no legal concerns
Answer: B
