_____ Arises When People Behave Recklessly Because They Know They

question 18

Multiple Choice

_____ arises when people behave recklessly because they know they will be saved if things go wrong.

• A)A debt situation
• B)Moral hazard
• C)A conflict of interest
• D)Policy failure

---

Definitions:

Service Firms

Companies that primarily provide intangible products or services to customers, such as consultancy, education, financial services, and healthcare.

Inventory

The total amount of goods and materials held by a company intended for sale or used in production.

Service Firms

Businesses that provide intangible products or services to consumers as opposed to tangible goods.

Activity Base

A measure used as a basis for allocating costs in activity-based costing; often related to the volume of activities driving costs.