Detailed Explanation:

Rationale for Correct Answer:By definition, conflict of interest fraud arises when an employee has a hidden financial or ownership interest in another entity with which the employer does business. The fraudster’s loyalty is divided because their interest lies outside of their primary employer.

Analysis of Incorrect Options:

B. False – Incorrect because the essence of conflict of interest is precisely that the fraudster’s interest lies outside their company.

Key Concept: Conflict of Interest (divided loyalty).