The Conflict of Interest in Credit-Rating Agencies Arises Because ________

question 85

Multiple Choice

The conflict of interest in credit-rating agencies arises because ________ pay to have securities rated and,as a result,the agencies' ratings may be biased ________.

• A) security issuers; downward
• B) security issuers; upward
• C) investors; downward
• D) regulators; upward

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Definitions:

Corporate Culture

Represents the shared values, beliefs, and practices that characterize an organization and influence its employee behavior.

Diverse Perspectives

The inclusion of varied viewpoints and backgrounds (cultural, educational, etc.) which can enrich problem-solving and decision-making processes.

Underperformed

To perform less well than expected or required.

Performance Orientation

A focus on achieving high standards and outstanding outcomes in tasks or performances.