A large computer manufacturer forbids its executives and managers from serving as directors or officers for Hewlett-Packard or any other corporations from which it might purchase component parts. The company is trying to prevent a. their employees from having other jobs. b. a conflict of interest. c. trade secrets from being revealed. d. losing its executives to other organizations. e. fairness and honesty.

Question

Business

Yazmin Brady

4 December, 11:54

A large computer manufacturer forbids its executives and managers from serving as directors or officers for Hewlett-Packard or any other corporations from which it might purchase component parts. The company is trying to prevent a. their employees from having other jobs. b. a conflict of interest. c. trade secrets from being revealed. d. losing its executives to other organizations. e. fairness and honesty.

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Answers (1)

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Aliyah Mann · Answer 1

The correct option is B, a conflict of interest

Explanation:

Conflict of interest refers to a situation where one has two competing business relationships contesting for one's loyalty and patriotism. The company is well aware that if the executives sit on HP's board or any other related organizations, their objectivity may be impaired in making business decisions involving it and any of the other companies cited.

The question is not about trade secrets as trade secrets most times reside with the lower level managers who are involved in the day to day activities of the organization not non-executives as portrayed in the scenario.