Question 33. Section5061(a) of Californias Business and Professions Code states that a person engaged in the practice of public accountancy shall not . . . pay a fee or commission to obtain a client.

You are a young CPA who wants to purchase the professional practice of a CPA located in California who is about to retire. Because you do not have much capital, you tentatively have agreed to pay the retiring CPA an amount equal to 20% of the client fee revenues generated over the next two years. Does this arrangement violate California law?

Question 49. A corporation has superior knowledge of its own prospects over all other stock market participants. Is it ethical for a company to repurchase its own shares as treasury stock?