The Conflict of Interest That Arises When a Shareholder Who

question 35

Multiple Choice

The conflict of interest that arises when a shareholder who has a controlling interest in multiple firms moves profits away from companies in which he has relatively less cash flow rights toward firms in which he has relatively more cash flow rights is called:

• A)expropriation.
• B)earnings management.
• C)tunnelling.
• D)profit mining.
• E)cash extraction.

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Definitions:

Behaviorists

Psychologists who study and theorize that all behaviors are acquired through conditioning and interaction with the environment.

Conditioning

A psychological process through which behavior is learned by associating an action with a particular outcome.

Reinforcement Effectiveness

The degree to which a reinforcement (either positive or negative) successfully influences future behavior in the desired direction.

Immediately

An action or event occurring without any delay, happening at once.