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

Comprehend the relationship between reinforcement and rewards in motivating employees.

Understand the differences between classical conditioning, operant conditioning, and social learning theory in acquiring new behaviors.

Differentiate between negative reinforcement, punishment, and positive reinforcement and their outcomes.

Understand the concept of reinforcement schedules in behavior modification and their impact on the extinction of behavior.

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Definitions:

Tax-oriented Lease

A leasing arrangement designed primarily to exploit tax advantages, often allowing the lessee to deduct lease payments as business expenses.

Financial Lease

A type of lease in which the lessee assumes both the risks and rewards of ownership of the asset, typically for its entire useful life.

Lessor

The individual or entity that rents or leases their property or asset to another person, referred to as the lessee.

Operating Leases

Operating leases are contractual agreements in which the lessee pays to use an asset for a short period relative to the asset's life, without assuming the risks and rewards of ownership.