If a corporate manager makes a decision that results in personal financial benefit while the company's...

If a corporate manager makes a decision that results in personal financial benefit while the company's owners lose financially, this is an ethical issue related to: *

dishonesty

communication problems

inequality

illegal actions.

conflicts of interest.

Solutions

Expert Solution

This is an issue related to conflict of interest because the managers has acted in his own interest and he has not acted in the interest of his principal who are shareholders so management it is responsible for always working in best interest of the shareholders equity shareholders are the principles and managers are their agents so there is an agency problem which is reflected through conflict of interest.

All the other options are false

Correct answer will be option (F) conflict of interest

jeff jeffy answered 2 years ago

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