"Self-dealing" is defined as ________.
A) a manager acting in his own best interest, as opposed to the interests of the other stakeholders
B) a cash bonus distributed privately amongst the top-management team
C) a manager promoting family members at the expense of others
D) a form of control that aligns the interests of principal and agent so both parties have the incentive to work together to maximize organizational effectiveness

Question

Quizplus · Accepted Answer

Self-dealing refers to a situation where a manager or executive acts in their own best interest rather than in the best interest of the other stakeholders of the organization, such as shareholders or employees. This can include taking actions that benefit themselves financially or otherwise, even if it is detrimental to the company or its stakeholders as a whole. Choices B and C both involve specific actions that could potentially be considered self-dealing, but they do not fully encompass the broader definition of the term. Choice D describes a form of control, not self-dealing.

"Self-Dealing" Is Defined as ________