Conflicts of interest arise when managers act for their own personal benefit rather than for the benefit of shareholders.

Question

Quizplus · Accepted Answer

Conflicts of interest occur when there is a divergence between the personal interests of managers and the interests of shareholders they are supposed to represent. This can result in actions that prioritize the manager's personal benefit over the shareholders, which is a breach of fiduciary duty.

Conflicts of Interest Arise When Managers Act for Their Own