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NEW QUESTION: 1
Ken Con is an agent with Blue Sky Broker-Dealers. He gets up early each morning so that he can study
any late-breaking news that may affect the markets and figure out ways to incorporate this news into
conversations with select clients in order to pressure them to restructure their portfolios by selling
holdings they have in one particular industry to invest the money in another particular industry. Ken has
been very successful with this strategy and executes more trades for his clients than any other agent with
the firm, but is he in danger of losing his license?
A. No. Ken is just a successful sales person who is working harder than the other agents in the firm.
B. It depends. If his clients have lost money, Ken may lose his license; but if a review indicates that his
clients' accounts earn profits, then his license is safe.
C. Yes. Ken is guilty of the prohibited practice of "tailgating."
D. Yes. Ken is engaging in churning, a prohibited practice and can have his license revoked or
suspended.
Answer: D
Explanation:
Yes. If Ken is getting up each morning in order to collect news that he can use to pressure
his clients to buy and sell their securities, Ken is engaging in churning and can have his license revoked
or suspended for this prohibited practice. A lot of the news might have a short-term effect on a particular
industry, but any profits gained by trying to time the market will often not be sufficient to cover the
commissions that the investor had to pay on the transactions and the taxes they may have to pay on the
short-term capital gains they realized when they sold securities. Regardless, it doesn't matter whether his
clients' accounts show a profit or not.

NEW QUESTION: 2
An internal auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
"A statistical sample of 40 employee personnel files was selected to verify that they contain all

documents required by company policy 501 (copy attached). No exceptions were noted." The auditor did not place any audit verification symbols on this workpaper.

Which of the following changes would most improve the auditor's workpaper?
A. Removal of the employee names to protect their confidentiality.
B. Use of audit verification symbols to show that each file was examined.
C. Listing of the actual documents examined for each employee.
D. Justification for the sample size.
Answer: D

NEW QUESTION: 3
You have been hired to consult with storage administrators that are working with zoning and naming convention consistency issues. There are numerous types of zoning methods available using standards that also include aliasing. You want to use a method that guarantees unique global port identification.
What accomplishes this goal?
A. WWPN
B. Zone set
C. Alias
D. domain_id:port_#
Answer: A