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:

Micro Level Practices

refer to behaviors, interactions, and small-scale processes occurring within societies or groups, often focusing on individual or personal dynamics.

Ethnomethodologists

Ethnomethodologists are social scientists who study the ways in which people create and maintain a sense of social order in everyday life through their routines, practices, and interpersonal interactions.

Accounts

An explanation or report about events or actions, often used in accounting and finance to reflect financial transactions.

Sociologists

Scholars who study society and social behavior by examining the groups, institutions, and processes that people develop and participate in.