Which of the Following Is True of Regulation

question 114

Multiple Choice

Which of the following is true of regulation?

• A) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
• B) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.
• C) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors will be unpopular.
• D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.

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Definitions:

Market Position

The rank or standing of a company's product or service in a marketplace relative to the competition, often based on factors like sales, perception, and reputation.

Financial Objectives

The monetary goals a company aims to achieve, such as profit targets, cost reduction, and revenue growth.

Straight Commission

A compensation method where pay is based solely on sales performance, typically a percentage of the sales generated.

Combination Approach

A strategy that combines various methods, techniques, or practices to achieve a more effective outcome or solution.