Paul Erdosh is an independent contractor who was hired by Arbitrage Securities to carry out a research project involving

[answerhappygod]

Paul Erdosh is an independent contractor who was hired by Arbitrage Securities to carry out a research project involving the software industry. The scope of the research was broad and the aim was to identify relatively undervalued stocks in that sector. During the course of the research, Paul realized that two of the companies in the sector were prime takeover targets if anyone bothered to do more research on them. He decided to sell this finding to M&A Consultants and obtain a research contract from them. He did not inform Arbitrage Securities about this deal, though he did submit a competent research report on the software industry to them. Paul has

A. not violated Standard III (B) - Duty to Employer.
B. violated Standard III (B) - Duty to Employer - because by selling the information to a rival firm, he has potentially harmed Arbitrage Securities' business.
C. not violated Standard III (B) - Duty to Employer - because he is an independent contractor, not an employee of Arbitrage Securities.
D. violated Standard III (B) - Duty to Employer. He needs written permission from Arbitrage Securities before releasing any of his findings to third parties.