What business risks does Toll Brothers face that may threaten the company’s ability tosatisfy stockholder expectations? What are some examples of control activities that thecompany could use to reduce these risks? (Hint: Focus on pages 10–11 of the 10-K.)

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Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.