A Conflict of Interest Occurs When

question 96

Multiple Choice

A conflict of interest occurs when

• A) a financial firm sells a service to its customers for a price that exceeds the cost of producing the service.
• B) lenders prefer higher interest rates and borrowers prefer lower interest rates.
• C) riskier borrowers are the ones who are more likely to apply for loans.
• D) people expected to provide reliable information to the public have incentives not to do so.

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Definitions:

Facilitating Functions

Activities and services that support and enhance the marketing, distribution, and consumption of products, such as transportation and financing.

Attractive

Having qualities that appeal to an audience; often used in marketing to describe products or services that draw customer interest.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production purposes.

Logistical Function

Activities involved in obtaining, producing, and distributing materials and products in the right quantities to an end user or final destination.