Conflicts of Interest Are Unethical Because They

question 100

Multiple Choice

Conflicts of interest are unethical because they

• A) diminish the professional's allegiance to the client.
• B) cause clients to put too much trust in professionals.
• C) are the main cause of double billing.
• D) pit stronger corporate clients against weaker private ones.

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Definitions:

Moody's

Moody's is a credit rating agency that assesses the creditworthiness of borrowers, ranging from governments to private enterprises.

C Rating

A rating given to a security indicating significant risk; it's one of the lower ratings in the grading scale of investments.

Catastrophe Bonds

Insurance-linked securities issued by insurance companies to transfer major risks from the issuer to investors, typically used for natural disaster risks.

Asset-Backed Bonds

Bonds that are secured by a pool of assets, such as loans or receivables, which generate the cash flow to pay bondholders.