CFA Level I Ethics Employer Duties MCQs Test 3

Practice CFA 2026 Level I Ethics MCQs from Employer Duties. Get instant results with Explanation.

Practice Quiz 3 for "Employer Duties" (Ethics). Total 36 MCQs available, split into 4 quizzes. Challenge yourself with advanced application-based questions. Mastering these concepts is essential for securing a high percentile in CFA.

General10 MCQs

1. What does Standard IV(C) Responsibilities of Supervisors require regarding response to violations?

A. Take reasonable steps to detect and prevent violations and respond appropriately when violations are detected.B. Only need to detect violations, not respond to them.C. Only need to respond to violations, not detect them.D. Supervisors are not responsible for violations by their subordinates.

2. What does Standard IV(A) Loyalty prohibit regarding loss of business?

A. Can engage in activities that cause the employer to lose business if they are not illegal.B. Must not engage in activities that would cause the employer to lose business.C. Can engage in activities that cause the employer to lose business if they are disclosed.D. Loyalty to the employer is optional.

3. What does Standard IV(B) Additional Compensation Arrangements require regarding written consent?

A. Only requires disclosure, not written consent.B. Written consent is not required if the compensation is de minimis.C. Requires disclosure to the employer and written consent for any compensation or benefits that could create a conflict of interest.D. Only requires oral disclosure to the employer.

4. What does Standard IV(C) Responsibilities of Supervisors require regarding understanding of subordinates?

A. Supervisors are not responsible for ensuring understanding of their subordinates.B. Only need to ensure understanding of the Code, not other laws.C. Only need to ensure understanding of subordinates who are directly involved in investment activities.D. Must take reasonable steps to ensure that persons under their supervision understand and comply with applicable laws, rules, regulations, and the Code and Standards.

5. What does Standard IV(A) Loyalty require regarding use of employer resources?

A. Act for the benefit of their employer and not use employer resources for personal gain.B. Can use employer resources for personal gain as long as they are not material.C. Can use employer resources for personal gain if they are disclosed.D. Loyalty to the employer is optional.

General10 MCQs

6. What does Standard IV(B) Additional Compensation Arrangements require regarding the amount of compensation?

A. Only requires disclosure of compensation that exceeds a certain amount.B. Requires disclosure to the employer of all compensation arrangements that could create a conflict of interest, regardless of the amount.C. Only requires disclosure of compensation from clients, not from others.D. No disclosure is required.

7. What does Standard IV(C) Responsibilities of Supervisors require regarding procedures?

A. Supervisors do not need to have procedures in place.B. Only need to have procedures for compliance with the Code, not other laws.C. Must take reasonable steps to prevent and detect violations and have appropriate procedures in place.D. Only need to have procedures for detecting violations, not preventing them.

8. What does Standard IV(A) Loyalty prohibit regarding harm to the employer's business?

A. Can engage in activities that harm the employer's business if they are not illegal.B. Can engage in activities that harm the employer's business if they are disclosed.C. Loyalty to the employer is optional.D. Must not engage in activities that could harm the employer's business.

9. What does Standard IV(B) Additional Compensation Arrangements require regarding acceptance of compensation?

A. Requires disclosure and written consent before accepting compensation that could create a conflict of interest.B. Only requires disclosure, not written consent.C. Written consent is not required if the compensation is from a client.D. Only requires oral disclosure to the employer.

10. What does Standard IV(C) Responsibilities of Supervisors require regarding corrective action?

A. Supervisors only need to detect violations, not correct them.B. Must exercise reasonable supervision and take corrective action when violations are detected.C. Supervisors are not responsible for taking corrective action.D. Only need to take corrective action if the violation is material.

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Conducting Body: CFA Institute

Frequency: 4 times a year (February, May, August, November) | Time: 70 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 90 MCQs):

Subject breakdown not available.

Merit Formula: -

Practice CFA MCQs

CFA FLP 1 CFA FLP 2 CFA FLP 3

CFA Level I Ethics Employer Duties MCQs Test 3

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