Which 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)owner-debtholder conflict

Question

Quizplus · Accepted Answer

As the venture gets close to bankruptcy, the owner-debtholder conflict increases as the owner may prioritize their own interests over those of the debtholders. The owner may take actions to secure their own assets or interests, which may be detrimental to the debtholders. This conflict arises due to the divergent interests of the owner and the debtholders, and it intensifies as the financial situation of the venture worsens. In contrast, the owner-manager, owner-employee, and manager-employee conflicts may exist at any stage of the venture and may not necessarily increase as the venture approaches bankruptcy.

Which of the Following Possible Conflicts of Interest Increases in Divergence