Which of the Following Concepts Holds That Voluntary Disclosure Is

question 64

Multiple Choice

Which of the following concepts holds that voluntary disclosure is necessary in order for a firm to compete successfully in the market for risk capital?

• A)Signalling theory
• B)Agency theory
• C)Information symmetry
• D)Private contracting

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Definitions:

Retirement

The act of leaving one's job and ceasing to work, typically due to age or health reasons.

Coupon Bond

A type of bond that pays the holder periodic interest payments based on a fixed rate and returns the principal at maturity.

Face Value

The nominal value or dollar value printed on a bond, stock, or other financial instrument, not necessarily its current market value.

Bond Matures

The point in time when a bond's principal amount is payable to the bondholder, and the obligation of the issuing party ends.