Discuss Two Ways in Which a Shareholder Can Mitigate the Problem

question 1

Essay

Discuss two ways in which a shareholder can mitigate the problem of moral hazard when investing in a company.

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Definitions:

Social Justice

Social justice is the concept of fair and just relations between the individual and society, measured by the distribution of wealth, opportunities for personal activity, and social privileges.

Economic Justice

The concept or philosophy that aims to ensure fairness in the distribution of wealth, opportunities, and privileges within a society.

Social and Economic

Pertaining to the interactions between social behaviors, relationships, and the economic activities within a society.

Social Media

Social media are digital platforms that facilitate the creation and sharing of information, ideas, personal messages, and other content via virtual communities and networks.