Employee Theft Is an Example of ________

question 109

Multiple Choice

Employee theft is an example of ________.

• A) adverse selection
• B) moral hazard
• C) herd behavior
• D) the internalization of externalities

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Definitions:

Debt-For-Debt

A restructuring process where a company replaces or swaps one form of debt with another, like changing the terms or the type of loan.

Debt-For-Equity Swaps

A financial restructuring tool where a portion of debt is exchanged for a pre-determined amount of equity or stock.

Fair Value

An estimation of the market value of an asset or liability based on the assumptions market participants would use when pricing the asset or liability.

Derivatives

Financial instruments whose value is derived from the value of one or more underlying assets or indices.