Question

You are a research analyst in charge of publishing research reports for your company, C-Minus Investment Banking and Research. Your analysts have been working on a research report for Dot Com Incorporated, a company which also has a pending investment banking relationship with your firm. You are concerned because all of the analysts in your department that have worked on the report have determined that the security is overvalued, and you agree. This may negatively affect the relationship between the two firms. What are your actions in this situation?[A] Notify Dot Com Incorporated's officers and their board of directors as to the upcoming negative report and delay the report's scheduled issue date.[B] Have your analysts review their analysis, highlighting the positive aspects of the company while downplaying the negatives.[C] Go on with the scheduled issue date as planned, issuing the objective report as is even though this may negatively affect business between the two companies.[D] Have the investment banking side of your company hurry the deal along, only releasing the negative report after the deal has gone through.

Answer 1

Answer:

[C] Go on with the scheduled issue date as planned, issuing the objective report as is even though this may negatively affect business between the two companies.

Explanation:

Although the communication between the two organizations might have a detrimental impact on business, it really is your duty to release the report as it is.

It is unethical to prolong the problem for convenience or as a favor to the executives of the other organization as the study shifts to downplay negativity.