What do service contracts, occupational licenses and cosigners all share in common?
A) reduced risk of adverse selection
B) reduced the risk of imperfect information
C) eliminate the risk of adverse selection
D) eliminate the risk of imperfect information

Question

Quizplus · Accepted Answer

Service contracts, occupational licenses, and cosigners all help in reducing the risk of imperfect information by providing assurances or guarantees about the quality of a service, the qualifications of a professional, or the reliability of a borrower, respectively. They do not completely eliminate these risks but mitigate them.

What Do Service Contracts, Occupational Licenses and Cosigners All Share