When owners have limited access to company information making executives free to pursue their own interests,it could lead to

Question

Quizplus · Accepted Answer

Limited access to company information creates an environment where executives can pursue their own interests without the knowledge of the owners. This creates a moral hazard problem where executives may take excessive risks or make decisions that benefit themselves at the expense of the company's owners. Adverse selection, self-concept, and concern for quality do not directly relate to limited access to company information.

When Owners Have Limited Access to Company Information Making Executives