$($i$)$ This is the second practice question.

Read the following paragraphs and choose the right answer.

The fundamental principle guiding the policy on conflict of interests and business ethics is that no employee should have, or appear to have, personal interests or relationships that actually or potentially conflict with the best interests of the empioying company or organization.

Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. Employees can seek further clarification on issues related to the subject of acceptable standards of operation. Situations that would constitute a conflict in most cases include but are not limited to: transactions with outside firms not conducted within a framework established or controlled by the executive level of the company or organization; bribes, bonuses, fringe benefits, unusual price breaks or excess volumes designed to benefit another company or organization, an employee, relative or acquaintance; holding an interest in$,$ or being employed by$,$ any company or organization that competes with the employing company or organization.

The passage above specifically refers to$...$