Peregrine Exam Day 3
conflict of interest
A situation in which a person in a position of responsibility or trust has competing professional or
personal interests that make it difficult to fulfill his or her duties impartially.
Vested Interest
A personal concern about the outcome of a project, business venture, etc.
Fiduciary
a person who holds assets in trust for a beneficiary
Self-Dealing
occurs when managers take advantage of their position to further their own private interests
rather than those of the firm
Gift Issuance
It occurs when a management-level professional accepts a transaction from another
organization that benefits the manager and harms the company or the company's clients.
insider trading
an unethical activity in which insiders use private company information to further their own
fortunes or those of their family and friends
Agency Problem
the possibility of conflict of interest between the owners and management of a firm
Enron Scandal
overstated profits, personal borrowing at company expense. misleading investors and
employees.
conflict of interest
A situation in which a person in a position of responsibility or trust has competing professional or
personal interests that make it difficult to fulfill his or her duties impartially.
Vested Interest
A personal concern about the outcome of a project, business venture, etc.
Fiduciary
a person who holds assets in trust for a beneficiary
Self-Dealing
occurs when managers take advantage of their position to further their own private interests
rather than those of the firm
Gift Issuance
It occurs when a management-level professional accepts a transaction from another
organization that benefits the manager and harms the company or the company's clients.
insider trading
an unethical activity in which insiders use private company information to further their own
fortunes or those of their family and friends
Agency Problem
the possibility of conflict of interest between the owners and management of a firm
Enron Scandal
overstated profits, personal borrowing at company expense. misleading investors and
employees.
