The Recent Enron and Tyco Scandals Are an Example of

question 46

Multiple Choice

The recent Enron and Tyco scandals are an example of

• A) the free-rider problem.
• B) the adverse selection problem.
• C) the principal-agent problem.
• D) the "lemons problem."

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Definitions:

Big Five Trait

A model suggesting that five broad dimensions underpin human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Hostile Attribution Bias

The tendency to interpret others’ behaviors or intentions as having hostile or aggressive motives, often leading to aggressive responses.

Worst in People

Refers to the tendency to bring out or focus on the most negative aspects or traits in others, often due to cynicism or pessimism.

Downside to Extraversion

The potential negative aspects of being extremely outgoing, such as overcommitment or superficial relationships.