A manager who pays a higher commission than would normally be paid to purchase the goods or services:
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A. B. C. D.C
This practice is commonly referred to as "paying up" for services.
The correct answer to the question is:
C. is violating the fiduciary duties owed to the client.
Explanation:
In the context of financial services, a fiduciary duty refers to the legal and ethical obligation that a professional has to act in the best interests of their clients. The fiduciary duty requires the professional to prioritize the client's interests above their own.
When a manager pays a higher commission than would normally be paid to purchase goods or services, it can indicate a potential conflict of interest. This situation suggests that the manager may have a personal incentive to select goods or services that offer higher commissions, rather than those that are truly in the best interests of the client.
By paying a higher commission, the manager is effectively increasing their own compensation at the expense of the client. This behavior undermines the fiduciary duty owed to the client, as it demonstrates a breach of the obligation to act solely in the client's best interests.
Therefore, the manager who pays a higher commission than would normally be paid to purchase goods or services is indeed violating the fiduciary duties owed to the client. The correct answer is C.