Learn How To Use WissenX Platform And Start Earning

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| By Cmthakkar

Cmthakkar

Community Contributor

Quizzes Created: 1 | Total Attempts: 32

Questions: 14 | Attempts: 32 | Updated: Apr 18, 2023

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Questions and Answers

1.

While discussing the impact of new food safety regulations on the food industry, client wishes to know how this would affect the stocks of PQR, a food company. Should Mentor answer this question?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor shall not give any investment advice, even if he offers it as mere guesswork.

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2.

The Mentor is a well-connected individual. A friend of a friend, who is on the Board of a certain PQR Company, has hinted that there likely to be an announcement with regard to the CEO of PQR. Can the Mentor mention this to the client?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Firstly, a Mentor cannot have discussions based on rumour and gossip. Secondly, the information has been obtained by him due to the breach of fiduciary duty by his friend’s friend, and is therefore to be treated as confidential. Mentor cannot discuss undisclosed information of PQR.

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3.

Mentor has retired from the R&D section of PQR, a pharmaceutical company. His client is enquiring about certain clinical trials conducted by PQR whilst Mentor was still employed there.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor has a fiduciary duty to his erstwhile employer. He is also likely to be specifically bound by contract to maintain confidentiality with regard to such trials. He should therefore not discuss these with the client.

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4.

During the course of a consultation, a client is obliged to give certain non-public information to the Mentor. Can the Mentor use this information during his consultations with other clients?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor is obliged to keep a client’s information confidential.

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5.

During the course of a consultation, a client gives certain non-public information about PQR Company to the Mentor. The Mentor believes that the stock value of PQR is bound to rise in the short term Can the Mentor purchase the stocks of Company PQR?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The Mentor cannot use non-public information obtained by him in the course of a consultation, for personal benefit. He also cannot advise others to purchase such stocks, whether or not he divulges the information.

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6.

The Mentor is a Director on the Board of PQR, which has just announced an open offer to stockholders for the sale of their shares. A client wishes to consult the Mentor on distribution channels in rural areas for the client’s own products. Can the Mentor advise the client?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
A Mentor employed by a company which is undergoing a tender offer, may not consult with clients at all during the period that the tender offer is open. This is so even though the subject matter of the consultation is unconnected.

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7.

Mentor is listed on the Website as Director of PQR, a telecom company. He thereafter retires from PQR and joins ABC, an FMCG company. He however, fails to update his personal information on the Website. A User makes an appointment with him to consult on the telecom business. Having made the requisite payment, User wishes to cancel the consultation upon discovering that Mentor is no longer involved in the telecom business. Mentor feels he still has the necessary expertise to consult with User. Is a refund due to the User?
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
A Mentor is responsible to update his profile on the Website. Users will make decisions as to choice of Mentors based on these profiles. If a User bases his decision on an incorrect or dated profile, then the Mentor is bound to make the necessary refund.

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8.

Mentor was a Director on the Board of PQR Company, which was recently in the news for being embroiled in litigation for tax evasion. His client wishes to consult him on this litigation and the various strategies used.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor may not discuss issues and non public information pertaining to his erstwhile employer. However, Mentor is free to consult on information that is in the public domain.

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9.

Mentor has retired from PQR, a market research company. It is known that PQR has conducted extensive surveys on the subject of advertising efficacy in the hair care segment. PQR has never published its findings with regard to these surveys. During a consultation, the client asks a question which would require the Mentor to reveal some of the survey results. Mentor wishes to answer the question as he has left the company long ago and much time has elapsed since the surveys were completed. Should he do so?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor may not reveal information that is owned by another party. Further, the information, being non-public, must remain confidential.

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10.

After analysing several news articles and published interviews with various Directors of PQR, Mentor has deduced that PQR is bound to resort to down-sizing in the near future. Can he discuss this analysis with a client?
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
He may discuss the PQR situation with a client as long as he makes it clear that his views are based on analysis/ conjecture, not on fact.

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11.

Mentor is the Director of a short film on priesthood. The release of this film was accompanied by vociferous agitations from religious right wing groups. A client is consulting with the Mentor on marketing methods for short films. During the consultation, Mentor rants about religious leaders and denounces certain religious groups. Is Mentor correct in doing so?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Mentor shall not share or partake in any consultation that has the propensity to incite another party or insult or denigrate any other person or group.

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12.

Mentor is planning on starting his own consultancy firm. He gathers information on potential clients from the WissenX Website and mails his bio-data to them. Can he do so?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The Website may only be used for consultations, as envisaged. Mentor may not use or store and store user information gleaned therefrom.

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13.

Mentor, a senior lawyer, has confirmed an appointment on the Website. Just before the appointed time, he gets called to the Court for his case that has just reached hearing. He asks his assistant, a very skillful and accomplished lawyer, to handle the appointment for him. His assistant is more than capable of handling the appointment successfully and up to the expectations of the client. Can the Mentor delegate the appointment as described?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The appointment cannot be so delegated without the prior permission of the client in writing via the WinnseX communication channels

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14.

A client reveals material non-public information to Mentor that indicates that the stock of Company PQR will crash shortly. Mentor’s wife owns shares in PQR. Can Mentor instruct his wife to sell her shares, even though he does not reveal the confidential information to her?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
This would amount to a “misappropriation” of the information. The Mentor has come into possession of the confidential information lawfully, however, any trading on that information by him, or by another party due to the information possessed by the Mentor, will amount to breach of duty to the source of the information. The Mentor shall not directly or indirectly benefit from trading on such information.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Apr 18, 2023

Quiz Edited by
ProProfs Editorial Team
Sep 07, 2016

Quiz Created by
Cmthakkar

Learn How To Use Wissenx Platform And Start Earning

While discussing the impact of new food safety regulations on the food industry, client wishes to know how this would affect the stocks of PQR, a food company. Should Mentor answer this question?

The Mentor is a well-connected individual. A friend of a friend, who is on the Board of a certain PQR Company, has hinted that there likely to be an announcement with regard to the CEO of PQR. Can the Mentor mention this to the client?

Mentor has retired from the R&D section of PQR, a pharmaceutical company. His client is enquiring about certain clinical trials conducted by PQR whilst Mentor was still employed there.

During the course of a consultation, a client is obliged to give certain non-public information to the Mentor. Can the Mentor use this information during his consultations with other clients?

During the course of a consultation, a client gives certain non-public information about PQR Company to the Mentor. The Mentor believes that the stock value of PQR is bound to rise in the short term Can the Mentor purchase the stocks of Company PQR?

The Mentor is a Director on the Board of PQR, which has just announced an open offer to stockholders for the sale of their shares. A client wishes to consult the Mentor on distribution channels in rural areas for the client’s own products. Can the Mentor advise the client?

Mentor was a Director on the Board of PQR Company, which was recently in the news for being embroiled in litigation for tax evasion. His client wishes to consult him on this litigation and the various strategies used.

After analysing several news articles and published interviews with various Directors of PQR, Mentor has deduced that PQR is bound to resort to down-sizing in the near future. Can he discuss this analysis with a client?

Mentor is planning on starting his own consultancy firm. He gathers information on potential clients from the WissenX Website and mails his bio-data to them. Can he do so?

A client reveals material non-public information to Mentor that indicates that the stock of Company PQR will crash shortly. Mentor’s wife owns shares in PQR. Can Mentor instruct his wife to sell her shares, even though he does not reveal the confidential information to her?