A conflict of interest occurs when
A) a financial firm sells a service to its customers for a price that exceeds the cost of producing the service.
B) lenders prefer higher interest rates and borrowers prefer lower interest rates.
C) riskier borrowers are the ones who are more likely to apply for loans.
D) people expected to provide reliable information to the public have incentives not to do so.
D
You might also like to view...
Which of the following is considered research and development costs?
a. Planned search or critical investigation aimed at discovery of new knowledge. b. Translation of research findings or other knowledge into a plan or design for a new product or process. c. Neither a nor b. d. Both a and b.
Residual income indicates how ________
A) efficiently a division uses its average assets to generate sales and thereby profits B) much operating income the division earns on every dollar of sales C) much return a division generates on average assets D) much extra operating income a division generates above the minimum acceptable level