Certified Texas Contract Manager Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Texas Contract Manager Exam. Study with practice questions and detailed explanations. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What type of conflict of interest involves a direct or indirect ownership interest of at least 1%?

Financial Conflict of Interest
Substantial Conflict of Interest
Other Conflict of Interest
Minor Conflict of Interest

The correct answer is: Financial Conflict of Interest

A financial conflict of interest specifically pertains to situations where an individual has a significant ownership stake in an entity, influencing their decision-making capabilities. In this context, a direct or indirect ownership interest of at least 1% is a clear threshold that indicates a potential conflict, as such a stake can lead to bias or self-interest influencing professional judgment or actions. The nature of this type of conflict emphasizes the importance of transparency and integrity in decision-making processes, especially in settings where financial interests could intersect with professional responsibilities. Having ownership interest at this level could affect how decisions are made and the perceived objectivity of the individual involved. Other types of conflicts may pertain to less significant interests or different scenarios that do not directly involve financial holdings of this magnitude or form, making them less relevant in the context of this specific question.