Part of the Reason Why Credit Ratings Firms Did Not

question 6

Multiple Choice

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank,which creates

• A)economies of scale.
• B)synergy.
• C)a conflict of interest.
• D)cooperation.
• E)efficiency.

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Definitions:

Merry Maids

A franchised domestic cleaning service company operating in the United States.

Operations Management Process

Involves planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods or services.

Custom Printing Shops

Businesses that specialize in personalizing and printing products according to customer specifications.

Intermittent Process

A production process that operates in short cycles so that it can change products.