A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporation from which it might purchase component parts. The company is trying to prevent
A) their employees from having other jobs.
B) a conflict of interest.
C) trade secrets from being revealed.
D) losing its executives to other organizations.
E) fairness and honesty.

Question

Quizplus · Accepted Answer

The company is trying to prevent a conflict of interest by not allowing its executives and managers to serve as directors or officers for Intel Corporation or any other corporation from which it might purchase component parts. This is to ensure that they make decisions solely in the best interest of the company and not potentially benefit from their involvement with another organization.

A Large Computer Manufacturer Forbids Its Executives and Managers from Serving