The Twin Agency Problems Limiting Financial Globalization Are Caused by These

question 21

Multiple Choice

The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.

• A) rulers of sovereign states and unsavory customs officials
• B) corporate insiders and attorneys
• C) corporate insiders and rulers of sovereign states
• D) attorneys and unsavory customs officials

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Definitions:

Difference

The result or discrepancy when comparing two or more entities, indicating distinction or variation between them.

Security Interest

A legal claim or right granted over an asset to secure the performance of an obligation, typically the repayment of a loan.

Enforceable Security

A financial instrument or an interest in property that can be legally upheld and enforced in a court of law.

Attachment

A legal process by which a court orders the seizure of property to secure the satisfaction of a judgment or as a means of obtaining jurisdiction.