Solved

According to Some Free-Market Theorists,there Are Private Economics-Based Incentives for the Organisation

Question 14

Multiple Choice

According to some free-market theorists,there are private economics-based incentives for the organisation that will ensure that credible information will be provided.Which of the following assumptions is not consistent with this?


A) Managers will provide true and correct information for fear of not being rewarded, or fired for not doing so.
B) Shareholders will assume managers will act opportunistically and so, in the absence of safeguards, will pay less for shares.
C) Lenders will price protect, in that the higher the preserved risk, the higher will be the cost of loan funds demanded.
D) All of the given options are correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents