Asked by Justin Robbins on May 27, 2024
Verified
Roy is a director of Sales Inc. Sales enters into a contract with TeleCenter Corporation in which Roy has a personal interest. Roy must
A) apply the "don't ask, don't tell" rule of personal conduct.
B) use the situation to his personal advantage.
C) make a full disclosure of the conflict of interest.
D) none of the choices.
Conflict Of Interest
A situation in which a person's private interests might interfere, or appear to interfere, with their professional responsibilities or duties.
Full Disclosure
This principal mandates that all pertinent and significant information must be revealed in financial reporting or in transactions to ensure transparency and fairness.
- Understand the mechanisms and legal obligations involved in corporate decision-making, including disclosure of conflicts of interest.
Verified Answer
SP
sarani pavithraMay 30, 2024
Final Answer :
C
Explanation :
Roy must make a full disclosure of the conflict of interest to ensure transparency and maintain trust within the organization. This is a standard ethical practice in business to avoid any appearance of impropriety.
Learning Objectives
- Understand the mechanisms and legal obligations involved in corporate decision-making, including disclosure of conflicts of interest.