Asymmetric information is a particular problem for __________ firms or firms with __________ relationship with a particular lending institution.
A) small; a longstanding
B) small; only a recent
C) large; a longstanding
D) large; only a recent

Question

Quizplus · Accepted Answer

Asymmetric information is more problematic for small firms or those with only a recent relationship with a lending institution because these firms are less known to lenders, making it harder for lenders to assess their creditworthiness.

Asymmetric Information Is a Particular Problem for __________ Firms or Firms