Which of the Following Is a Problem That Could Be

question 50

Multiple Choice

Which of the following is a problem that could be raised by the fact that entrepreneurs have information about their business opportunities that investors don't have?

• A) Investors have to make decisions based on limited information.
• B) Since entrepreneurs have superior information, they can use it to obtain capital from investors and use it for their own benefit.
• C) The existence of adverse selection.
• D) A and C only.
• E) A, B, and C.

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Definitions:

Restraining Forces

are factors or influences that resist or oppose change, hindering movement towards a desired state.

Stability

The quality of being resistant to change, maintaining a consistent state over time, or returning to an equilibrium after a disturbance.

Predictable Role Patterns

Established behaviors and responsibilities expected from individuals in specific positions within an organization.

Dysfunctional

Dysfunctional describes behaviors or processes that hinder an organization's or individual's performance and productivity.