Which of the Following Is NOT an Example of a Conflict

question 13

Multiple Choice

Which of the following is NOT an example of a conflict of interest?

• A) Advising two clients at the same time who are competing to acquire the same company when the advice might be relevant to the parties' competitive positions
• B) Advising a client to invest in a business in which, for example, the immediate family member of the CPA has a financial interest in the business
• C) Providing tax or personal financial planning services for several members of a family whom the CPA knows to have opposing interests
• D) Accepting commissions in a financial planning engagement for a nonaudit client

---

Definitions:

Demand

The amount of a particular good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Midpoint Formula

A more precise way of calculating percentages using the value halfway between P1 and P2 for the base in calculating the percentage change in price and the value halfway between Q1 and Q2 as the base for calculating the percentage change in quantity demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating how sensitive consumers are to price changes.

Hamburger

A popular fast food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun often accompanied with various condiments and toppings.