SY0-701 · Question #795
SY0-701 Question #795: Real Exam Question with Answer & Explanation
The correct answer is B: Conflict of interest. When the CFO’s personal relationship with the vendor could improperly influence (or appear to influence) company purchasing decisions, it creates a conflict of interest. The CFO should disclose the relationship and recuse themselves from the approval process.
Question
A vendor salesperson is a personal friend of a company's Chief Financial Officer (CFO). The company recently made a large purchase from the vendor, which was directly approved by the CFO. Which of the following best describes this situation?
Options
- ARules of engagement
- BConflict of interest
- CDue diligence
- DContractual impact
- EReputational damage
Explanation
When the CFO’s personal relationship with the vendor could improperly influence (or appear to influence) company purchasing decisions, it creates a conflict of interest. The CFO should disclose the relationship and recuse themselves from the approval process.
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