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The founder of Company P, who owns 51% of the company, chooses to buy materials from Firm S, which is owned by a family relative.
The founder of Company P, who owns 51% of the company, chooses to buy materials from Firm S, which is owned by a family relative. Firm S charges 25% above current market price for its products, which are of ordinary quality. In this scenario, conflicts of interest are most likely to arise between Company P's: A customers and suppliers. B creditors and board of directors. C controlling shareholder and minority shareholders
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