Use the Following Statements to Answer the Question

question 13

Multiple Choice

Use the following statements to answer the question:
I.Increasing disclosure of information about the firm enhances transparency in the market.
II.Disclosure enhances the understanding of a firm's actions, hence it increases the efficiency of the market.

• A)I is incorrect, II is correct.
• B)I is correct, II is incorrect.
• C)I and II are incorrect.
• D)I and II are correct.

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Definitions:

Closed-ended Research

Research methodology that uses predefined responses to questions, allowing for easy quantification of data.

Closed-ended Research

A research approach that uses structured questions with predetermined response options in surveys or questionnaires.

Open-ended Research

A research approach that allows for the collection of detailed, qualitative data without limiting respondents to predetermined answers.

Explanation

Providing reasons for how or why something occurs, often involves detailing cause-and-effect relationships.