Someone Directly Involved in a Transaction Can Solve the Problems

question 63

Multiple Choice

Someone directly involved in a transaction can solve the problems caused by information asymmetry by:

• A)proofing.
• B)building a reputation.
• C)enacting disclosure laws.
• D)mandating that information be shared.

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Definitions:

Financial Settlements

Agreements reached between parties in dispute, where monetary compensation is made to settle the matter without going to trial.

Harassment

Unwanted conduct affecting the dignity of men and women in the workplace, which may lead to a hostile work environment.

Reasonable Person

A legal standard used to determine how an average person would responsibly act under specific circumstances.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that affects an individual's employment, interferes with work performance, or creates a hostile work environment.