Why Is Enforcement by Institutions Actually "Self-Enforcement

question 58

Multiple Choice

Why is enforcement by institutions actually "self-enforcement"?

• A)Institutions can force their own members to comply with their agreements without outside help.
• B)There is no central international authority capable of forcing actors to cooperate.
• C)To force members to cooperate,actors pay dues to their institutions to create their own enforcement agency.
• D)Each institution is defined as a sovereign entity or "self."

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Definitions:

Debt Instrument

A written obligation to repay borrowed funds or debts under defined terms, such as bonds, notes, or mortgages.

Preemptive Rights

Privileges granted to existing shareholders to buy additional shares in the company before the shares are offered to the public, thereby protecting their ownership percentage.

Issued Stock

Refers to the number of shares that a company has officially issued to shareholders.

Preferred Stockholders

Investors who own preferred shares in a company, which typically gives them priority over common stockholders in terms of dividends and assets in the event of liquidation.