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Which of the Following Is an Example of an Asymmetric

Question 78

Multiple Choice

Which of the following is an example of an asymmetric information problem?


A) A corporation releases toxic wastes into a river.
B) A corporation relocates to Ireland to take advantage of lower corporate tax rates.
C) A stock analyst rates a stock higher than it deserves because the securities firm she works for wants to obtain business from the corporation that issued the stock.
D) A corporation manipulates its financial information to avoid disclosing a large loss from its operations in China.

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