Because Information Is Scarce

question 81

Multiple Choice

Because information is scarce,

• A) equity contracts are used much more frequently to raise capital than are debt contracts.
• B) monitoring managers gives rise to costly state verification.
• C) government regulations, such as standard accounting principles, can help reduce moral hazard.
• D) all of the above are true.
• E) only B and C of the above are true.

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Definitions:

Social Self-Efficacy

A person's confidence in their ability to engage in and succeed at social interactions and relationships.

Negative Outcome Expectancies

The belief or anticipation that the consequences of undertaking a certain behavior or action will be adverse.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental illness, emotional disturbances, and dysfunctional behavior.

Counseling Psychology

A field of psychology focused on facilitating personal and interpersonal functioning across the lifespan, emphasizing emotional, social, vocational, educational, health-related, developmental, and organizational concerns.