Conflicts of interest often compromise managers' ability to make ethical decisions. Which of the following situations most likely includes a conflict of interest?
A) Selling goods and services at discounted prices to some clients based on historical volumes
B) Offering sales on credit only to creditworthy clients
C) Paying dividends to shareholders rather than investing in an environmental project
D) Using LIFO to report the cost of ending inventory on the balance sheet

Question

Quizplus · Accepted Answer

Paying dividends to shareholders rather than investing in an environmental project may involve a conflict of interest, as managers might prioritize short-term shareholder returns over long-term sustainability and ethical considerations.

Conflicts of Interest Often Compromise Managers' Ability to Make Ethical