Conditions That Must Be Met for Principal-Principal (PP)conflicts to Occur

question 63

Multiple Choice

Conditions that must be met for principal-principal (PP) conflicts to occur include all of the following except

• A) a dominant owner or group of owners who have interests that are distinct from minority shareholders.
• B) legislation that protects the interests of minority shareholders.
• C) a motivation for the controlling shareholders to exercise their dominant position to their advantage.
• D) few formal (such as legislation or regulatory bodies) or informal constraints that discourage or prevent the controlling shareholders from exploiting their advantageous positions.

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Definitions:

Cash Receipt

Documented acknowledgment of the receipt of cash, typically recorded at the time cash is received from customers or other sources.