Which One of the Following Possible Conflicts of Interest Increases

question 8

Multiple Choice

Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?

• A) owner-manager conflict
• B) owner-employee conflict
• C) manager-employee conflict
• D) manager-debtholder conflict

---

Definitions:

Risk Averse

The preference for certainty and the avoidance of risk in investments or economic decisions, often leading to choices that offer lower returns in exchange for reduced risk.

Comparable Good Outcomes

Situations where two or more goods or scenarios produce similarly beneficial effects or results.

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.