Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?
A) owner-manager conflict
B) owner-employee conflict
C) manager-employee conflict
D) manager-debtholder conflict

Question

Quizplus · Accepted Answer

As a venture approaches bankruptcy, the interests of managers and debtholders often diverge. Managers may take actions to benefit equity holders at the expense of debtholders, such as taking on high-risk projects, since equity holders have less to lose and more to gain if the venture succeeds.

Which One of the Following Possible Conflicts of Interest Increases