Which of the Following Statements Is Correct with Regard to the Conflict

question 181

Multiple Choice

Which of the following statements is correct with regard to the conflict of interest idea in business?

• A) Conflicts of interest exist only in peoples' minds.
• B) A conflict of interest occurs when an activity benefits an individual at the expense of the employer.
• C) A conflict of interest occurs when employees of equal rank have a disagreement.
• D) A conflict of interest occurs when a boss and a subordinate have a disagreement.
• E) All of the statements are correct.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and a stake in the company's performance.

Preemptive Rights

Legal rights that allow existing shareholders the opportunity to buy additional shares before the company offers them to the general public.