Although Debt Contracts Require Less Monitoring Than Equity Contracts,debt Contracts

question 90

Multiple Choice

Although debt contracts require less monitoring than equity contracts,debt contracts are still subject to ________ since borrowers have an incentive to take on more risk than the lender would like.

• A)moral hazard
• B)agency theory
• C)diversification
• D)the "lemons" problem

Recognize the legal aspects and exceptions of the employment-at-will doctrine.

Identify practices to retain high-demand employees in a competitive market.

Understand disciplinary procedures and the progressive discipline process in the workplace.

Grasp the significance of immediate and consistent discipline based on the hot-stove rule.

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Definitions:

Achievement-Oriented

A repeat of a prior key term, rephrased: Characterized by a strong motivation to achieve high standards and excel in set objectives or tasks.

Self-Fulfilling Prophecy

A belief or expectation that influences behaviors in a way that causes the belief to become true.

Mutual Trust

A foundational element in relationships and team dynamics, characterized by the belief in the reliability, integrity, and ability of others.

People-Oriented

An approach or leadership style that emphasizes the importance of valuing, supporting, and developing employees.