A person who is on the board of a bank also sits on the board of a computer manufacturing company that borrows money from that bank. This is an example of a(n)_______________ .

Question

Quizplus · Accepted Answer

This situation describes an interlocking corporate directorate, where a person sits on the board of two or more companies, creating potential conflicts of interest. In this case, the person's role on the bank board could influence decisions related to lending money to the computer manufacturing company on whose board they also sit.

A Person Who Is on the Board of a Bank