Moral Hazard Occurs When Individuals

question 139

Multiple Choice

Moral hazard occurs when individuals:

• A) do not do what is in their own best interest.
• B) know more about acceptable business behaviour than other people do.
• C) have an incentive to violate their morals.
• D) know more about their actions than other people do.

Recognize the role and function of informal networks within organizations.

Differentiate between forms of communication (oral, written, visual).

Comprehend the significance of social intelligence in effective communication.

Identify the roles of sender and recipient in the business communication process.

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Definitions:

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and provide the ability to see color and fine detail.

Colorblind

The inability or decreased ability to see color, or perceive color differences, under normal lighting conditions.

Blind Spot

The area in the field of vision that lacks light-detecting photoreceptor cells due to the location where the optic nerve exits the eye, resulting in a lack of visual perception in this zone.

Optic Nerve

The optic nerve is a crucial part of the visual system, transmitting visual information from the retina to the brain.