Which of the Following Is NOT True

question 10

Multiple Choice

Which of the following is NOT true

• A) The bonus structure at banks can lead to short-term horizons for decision making
• B) Securitization involves the transfer of risk
• C) The term "agency costs" describes the situation where the incentives of two parties in a business relationship are not perfectly aligned
• D) Correlations decrease in stressed market conditions

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Definitions:

Management Exception

A management approach where only significant deviations from a set budget or plan are brought to the attention of management.

Concurrent Control

A management strategy that involves monitoring and adjusting ongoing activities and processes to ensure they meet the desired standards.

Bureaucratic Control

Influences behaviour through authority, policies, procedures, job descriptions, budgets and day‐to‐day supervision.

Organisation's Hierarch

Organisation's hierarchy refers to the structured layers of leadership and management within an organization, specifying roles, responsibilities, and the flow of information between levels.