Final answer:
A conflict of interest can arise when a fiduciary prioritizes their own interests over the interests of the account. In a proprietary colony, the Proprietors have responsibilities beyond just collecting profits.
Step-by-step explanation:
A conflict of interest can arise in any situation where a fiduciary puts its own interest before the interests of the account. This means that if someone who is responsible for managing someone else's money, property, or other assets, acts in a way that benefits themselves instead of the person they are supposed to be taking care of, it is considered a conflict of interest. For example, if a financial advisor recommends an investment that will earn them a high commission, even though it may not be the best option for their client, it would be a conflict of interest.
In a proprietary colony, the Proprietors do have responsibilities beyond just collecting profits, so the statement is false. Proprietary colonies were established in the American colonies where the King of England granted land to individual Proprietors who then had governing rights and responsibilities over the colony. They were expected to establish laws, provide governance, and administer justice in addition to collecting profits from the colony.