Conditions that must be met for principal-principal (PP)conflicts to occur include all of the following except
A) a dominant owner or group of owners who have interests that are distinct from minority shareholders.
B) legislation that protects the interests of minority shareholders.
C) a motivation for the controlling shareholders to exercise their dominant position to their advantage.
D) few formal (such as legislation or regulatory bodies) or informal constraints that discourage or prevent the controlling shareholders from exploiting their advantageous positions.

Question

Quizplus · Accepted Answer

In general, three conditions must be met for PP conflicts to occur:a dominant owner or group of owners who have distinct interests from minority shareholders; motivation for the controlling shareholders to exercise their dominant positions to their advantage; and few formal (such as legislation or regulatory bodies) or informal constraints to discourage controlling shareholders from exploiting their advantageous positions.

Conditions That Must Be Met for Principal-Principal (PP)conflicts to Occur