The so-called moral-hazard problem in ﬁnancial management refers to the fact that managers will tend to take on more
risk if they know that they are somehow insured against some or all of their losses.

Name: The so-called moral-hazard problem in ﬁnancial management refers to the fact that managers will tend to take on more risk if they know that they are somehow insured against some or all of their losses.
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Question

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The statement accurately describes the moral hazard problem in financial management.

The So-Called Moral-Hazard Problem in ﬁNancial Management Refers to the Fact