Which statement best explains "information asymmetry"?
A)Information asymmetry means that there is uncertainty about the future.
B)Information asymmetry means that some people have more information than others.
C)Information asymmetry means that external parties need financial information.
D)Information asymmetry means information is material to a decision maker.

Question

Quizplus · Accepted Answer

Information asymmetry occurs when some individuals or organizations have more information than others, resulting in an unfair advantage in decision-making. This can occur in various situations, including the market and employment relationships.

Which Statement Best Explains "Information Asymmetry