Executives at Big Book Inc. had uncovered an internal problem involving embezzlement in the royalty department. In having to decide whether to go to the police or handle the problem themselves, they were faced with the possibility of a(n) ________.
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Conflict of interest. Investigating internal problems like theft could make the executives accuse the wrong person and then be held liable if they investigate and accuse the wrong person. Firing the wrong person can lead to lawsuits. It is better to have an investigative company come in or professional auditor (3rd person) who can do a complete investigation without a conflict of interest. The police can be called but without a suspect, there is not much they can do. Therefore, an investigation is needed first to find out who is doing the embezzlement before calling the police with the name of the suspect (and proof). Police can only arrest those who they have reasonable proof of doing something wrong. The District Attorney who prosecute the case will need the proof as well before they will agree to prosecute the case.
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I apologize. I worked in the business world for 25 years and book knowledge doesn't work in the real world. If you withdraw the question, I can refund your $1.00. Again, I am sorry I gave you the wrong answer.