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