If a Conflict of Interest Exists

question 14

Multiple Choice

If a conflict of interest exists

• A)it will always have serious adverse consequences.
• B)it may not have a serious adverse consequences if the incentive to take advantage of the conflict is low.
• C)the government needs to step in to pass legislation to remove the conflict.
• D)there will not be serious adverse consequences,even if the incentive to take advantage of the conflict is low.

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Definitions:

Government

The system or group of people governing an organized community, often a state or nation.

External Benefit

A positive effect or advantage that results from a product or service's production or consumption, which affects third parties not directly involved in the transaction.

Tax

A financial charge imposed by a government on individuals or entities, primarily to raise revenue for public expenditures.

Activity

Engagements or actions undertaken by individuals, businesses, or economies, often implying economic transactions or movements.