When one party to a business relationship can make decisions that benefit him or her but harm the other party a

Question

Quizplus · Accepted Answer

A conflict of interest arises when one party can make decisions that benefit themselves but are detrimental to the other party. It is important to identify and manage conflicts of interest to ensure fair and ethical business practices. Lawsuits and contracts may also arise as a result, but they are not the automatic consequence of a conflict of interest. Contingent liability refers to a potential financial obligation that may arise in the future and is not applicable in this context.

When One Party to a Business Relationship Can Make Decisions