True or False: Accepting gifts from business associates may create a conflict of interest.

Accepting gifts from business associates can indeed create a conflict of interest, and this statement is true. The underlying issue stems from the potential for bias or favoritism that arises when one party accepts gifts. This can lead to situations where decisions may be influenced by the expectation of reciprocation or favor in business dealings, undermining impartiality and ethical standards.

In professional environments, the perception of integrity is crucial for maintaining trust. Accepting gifts can lead to questions about motivations and judgment, potentially damaging relationships with clients, colleagues, or stakeholders who might view the acceptance of gifts as a sign of compromise.

Other choices suggest circumstances or limitations regarding the acceptance of gifts. However, the core principle remains clear: any acceptance of gifts without strict guidelines, regardless of size or context, can lead to ethical dilemmas and conflicts of interest. Thus, the assertion that accepting gifts from business associates may create a conflict of interest holds true across various situations.