Which of the Following Was Perhaps the Greatest Defect of State

question 63

Multiple Choice

Which of the following was perhaps the greatest defect of state corporate governance laws?

• A) Inability to control costs in emerging markets.
• B) Inability to provide access to low-cost funding sources.
• C) Inability to regulate litigation pertaining to fiduciary responsibilities.
• D) Inability to prevent fraud and manipulation in national capital markets.

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Definitions:

Private Goods

Goods that are both rivalrous and excludable, meaning consumption by one person reduces availability for others and access can be restricted.

Tragedy of the Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is contrary to the group's long-term interests.

Private Good

A product or service that is individually consumed and can be easily excluded from non-payers, making it rivalrous in consumption.

Subsidize

Financial support given by the government or another organization to reduce the cost of goods, services, or activities, often to encourage development or consumption.