Conflicts of Interest Are an Ethical Problem for a Business

question 5

Multiple Choice

Conflicts of interest are an ethical problem for a business because they _________ .

• A)violate an individual's right to privacy
• B)create profits that would be owed to other companies instead
• C)create incentive for company representatives to act against others' best interest
• D)prevent the company from succeeding as well as it might otherwise

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Definitions:

Price-Maker

An entity, such as a firm, that has the ability to influence the price of goods or services it sells, typically due to lack of competition.

Perfect Competitor

A theoretical market structure where many firms sell identical products, with no single seller able to influence market prices, ensuring maximum efficiency.

Withholds Output

A strategy where a firm or supplier limits the supply of a product to increase demand or prices.

Perfect Competition

A market structure characterized by a large number of buyers and sellers, homogenous products, and the free entry and exit of firms, leading to price-taking behavior.