Professional responsibility question

Submitted by raza82 on Wed, 01/30/2013 - 15:40

As the PM, you are in the Conduct Procurement Process and have 3 different vendors on your qualified seller list who have responded to your company's RFP.

One of the vendors remaining on the qualified sellers is X company. Although you have no financial interest in this company, one of your friends is an investor of this company. Is there a conflict of interest in this situation?

a) Since neither you nor your family members have any financial interest in the company, there is no conflict of interest.

b) in order to protect your privacy, you only have to Disclose your relationship with this company, there is no conflict of ineterst.

c) Depending on the depth of your friendship, a conflict of interest could exist.

d) Because of your friendship, a conflict of ineterst exists that must be disclosed immediately

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 908 reads

raza82

Thu, 01/31/2013 - 12:45

Any Answer on this? 

Connect2pmzilla

Thu, 01/31/2013 - 22:40

Guess answer is A

sunitaPMP

Fri, 02/01/2013 - 01:33

Ans D?

raza82

Fri, 02/01/2013 - 06:26

I too answered D, but it is given the right answer as A.

Explaination: Friendship does not necessarily create a conflict of interest. howeever if its a deep relationship, there may be appearance of impropreity but not necessary a conflict of ineterest.

 

Can anyone further elaborate on this? 

 

admin's picture

admin

Fri, 02/01/2013 - 07:42

c is totally ambigous, there is no way to measure depth of friendship so ruled out.

The friend is just and investor in the company, it does not even say that he is a major investor, In fact many a times you may not even know if your friend has invested in a company. "Friend" as such is not a valid relationship to create conflict of interest. Moreover it does not even say "close friend"... What if you suddenly become friend with someone ?... These things cannot be measured, neither it can be proved in court of law.

 

steelproject2012

Fri, 02/01/2013 - 10:16

now supposing the question says you have a CLOSE FRIEND, who is an investor in company X, is there any conflict of intrest?

sspawar

Fri, 02/01/2013 - 11:17

 option A is wrong . 

indirectly you have a financial interest with his company.

it depends on organization culture and norms and your roll in the comany .

option D is more close to answer.