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    Conflict of Interest with bank, shareholders, managers

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    Henry's Balance Sheet

    Cash C Henry's Equity HE
    Raw Material R Liabilities + Stockholder's Equity TA
    Tools T
    Garage G
    Total Assets TA

    Revised Balance Sheet

    Henry's Balance Sheet
    Cash C Bank Loan B
    Raw Material R Henry's Equity HE
    Tools T Liabilities + Stockholder's Equity TA
    Garage G
    Total Assets TA

    Consider the fictionalized account of Henry's car firm
    a) Describe some of the conflicts of interest between Henry and the bank
    b) Describe some of the conflicts of interest between Henry and the other shareholders
    c) Describe some of the conflicts of interest between the managers and Henry

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    https://brainmass.com/business/conflict-management/conflict-interest-bank-shareholders-managers-271244

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    ANSWERS

    a) Describe some of the conflicts of interest between Henry and the bank

    Some of the conflicts of interest between Henry and the bank result from the fact that creditors such as the bank are paid first, for interest, before Henry does. One of the conflicts is that Henry can direct the car firm to ...

    Solution Summary

    The solution examines the conflict of interest with bank, shareholders and managers.

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