Which of the Following Correctly Describes Moral Hazard-Type Behaviour by Managers

question 38

Multiple Choice

Which of the following correctly describes moral hazard-type behaviour by managers?

• A) Managers disclose complete information about their behaviour to the shareholders.
• B) Managers offer to increase sales and profits but, once hired, act in their own interests.
• C) Managers reduce the monitoring costs through good performance.
• D) Managers help in the expansion of the business and increase profits.

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Definitions:

Privileged

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A condition characterized by the excessive use of substances, including alcohol and drugs, leading to significant impairment or distress.

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Schizophrenia

A long-lasting and serious psychological condition that influences an individual's thinking, emotional state, and actions, typically marked by false beliefs, sensory experiences without a stimulus, and confused thought processes.