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Moral Hazard Makes the Public Vulnerable to Abuses of the Power

question 57

True/False

Moral hazard makes the public vulnerable to abuses of the power delegated to elected agents.


Definitions:

Certificate Of Incorporation

An official document issued by a government authority that establishes a corporation's legal existence.

Corporate Charter

A legal document establishing a corporation and outlining its structure, governance, and purpose, issued by a governmental authority.

Legal Existence

The state of being recognized by law as a legal entity capable of rights and obligations.

Closely Held

Describes a company or corporation that has a small group of shareholders, with shares that are not publicly traded on the stock market.

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