What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Standard I(B) Independence and Objectivity practice questions
Standard I(B) Independence and Objectivity is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 5 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Standard I(B) Independence and Objectivity
An analyst accepting an issuer-paid luxury vacation before publishing research most directly raises concerns under:
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Standard I(B) Independence and Objectivity
An issuer offers to pay an analyst's commercial flight and modest hotel costs for a remote plant tour unavailable otherwise. The analyst's firm approves and the expenses are NOT lavish. The analyst most likely:
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Standard I(B) Independence and Objectivity
An issuer offers an analyst a plant visit including business-class airfare, a resort stay, golf, and meals. The analyst's firm can pay for necessary travel. The most appropriate action is to:
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Standard I(B) Independence and Objectivity
An issuer asks an analyst to initiate coverage and offers to pay for a three-day resort visit with executive meetings, golf, and a private concert. The analyst's employer has no policy on issuer-paid travel. The analyst can most appropriately maintain independence and objectivity by:
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Standard I(B) Independence and Objectivity
An investment banking client threatens to end a mandate unless a sell-side analyst delays a downgrade that the analyst's model now supports. The analyst's supervisor asks for a one-week delay so bankers can renegotiate fees. The analyst's least appropriate action is to:
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