The Concept of "Moral Licensing," in the Context of Conflicts

question 31

Multiple Choice

The concept of "moral licensing," in the context of conflicts of interest,relates to:

• A) A person receiving actual consent to proceed in a professional relationship, despite the potential for a conflict of interest to arise
• B) A person receiving implied consent to proceed in a professional relationship, despite the potential for a conflict of interest to arise
• C) A person who potentially will benefit from a conflict of interest agreeing to make periodic payments to reimburse any party who is adversely affected by the conflict of interest
• D) A person making exaggerated claims about goods or services after having disclosed influences that create the appearance of a conflict of interest

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Definitions:

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policy and strategy.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a share in the company's profits.

Minimum Dividends

The smallest amount of dividends a company decides to pay out to its shareholders, often based on agreements or policy.

Par Common Stock

The nominal or face value of a common stock as stated in the corporate charter, unrelated to its market value.