Which Statement Is NOT True

question 99

Multiple Choice

Which statement is NOT true?

• A) Most provinces had repealed Prohibition by the early 1920s.
• B) Prohibition was unsuccessful in reducing alcohol consumption and related deaths in Canada.
• C) Crime increased in major Canadian cities as a result of Prohibition.
• D) The social problems associated with Prohibition still fuel arguments against current restriction of psychoactive drugs in general.

Identify the principal-agent problem in corporations and its consequences on company operations and objectives.

Calculate the expected loss in different scenarios involving risk management decisions, such as flood control or fire prevention.

Comprehend how moral hazard can be mitigated or eliminated through monitoring and adjusting insurance premiums.

Recognize the role of government and insurance regulations in addressing moral hazard in industries like banking and savings & loan.

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Definitions:

Upstream Sale

A transaction where a subsidiary sells goods or services to its parent company, affecting intercompany transactions and transfer pricing.

Unrealised Profits

Profits that have been earned but not yet realized through a transaction, such as the increase in value of an investment that has not been sold.

Issued Capital

The total value of a company's shares that have been issued to shareholders.