All of the Following Are Examples of a Conflict of Interest

question 7

Multiple Choice

All of the following are examples of a conflict of interest, except:

• A) gifts from companies in exchange for ordering their products.
• B) having your spouse buy stock in a biomedical firm that supplies your employer.
• C) going to a CME course sponsored by your medical school.
• D) speaking for a pharmaceutical firm in exchange for a fee.
• E) All of these are examples of a conflict of interest.

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Definitions:

Signaling Effect

A theory in finance that suggests when a company announces an increase or decrease in dividends, it signals its financial health and prospects to investors.

Expansion Policy

A strategy or set of guidelines that an organization follows to grow its business operations, either by expanding into new markets, increasing product lines, or enhancing capacity.

Cash Stream

A series of incoming and outgoing cash transactions over a period of time.

Capital Appreciation

An increase in the value of an asset or investment over time, not including dividends or interest earnings.