Bruce Barnett Investment (BBI) is a prominent hedge

fund on Bay Street in Toronto. Bruce founded the hedge in 2001 and today, BBI has 41 employees

and manages close to $1 billion in assets.

Your friend Jenn had an internship at BBI over the summer and she was eager to tell you about

her experience:

I was very lucky to get that job! There was an extensive interview process, as BBI is keen

on ensuring they hire the best person for the job. Once I was selected, they checked all my

references, did a background check, and finally offered me the job.

At BBI, Bruce is the CEO, chairman of the board, and still the best account manager in

this business. Bruce is involved in every aspect of the business and he is everywhere. He constantly

oversees what you do and often tells you to change something you've done because he

disagrees. Bruce is a legend at the office. No one dares to contradict him.

Bruce is all about maximizing the returns, and he is very good at motivating people. He

offers large bonuses based on portfolio profitability and promotes traders that do well. He

doesn't seem to care how they make profit, as long as the numbers are good.

It was good work experience overall and I learned a lot. We had to attend many information

sessions on regulations for trading as well as panel discussions on ethics in finance. Bruce

never came to those, but all employees had to attend.

Required:

Comment on the control environment of BBI. Ensure that you support why a certain element of the control

environment is positive or negative.