When owners have limited access to company information making executives free to pursue their own interests refers to

Question

Quizplus · Accepted Answer

This scenario describes a moral hazard problem, where executives may prioritize their own interests over the interests of the company due to limited oversight and access to information from the owners. Adverse selection refers to the problem of one party having more information than the other before entering into a contract. Self-concept and concern for quality are not relevant to this scenario.

When Owners Have Limited Access to Company Information Making Executives