Moral Hazard

question 81

Multiple Choice

Moral hazard:

• A) is when the principle has too much authority over the agent.
• B) is when the agent is motivated to pursue their own self-interest.
• C) is when the principle behaves unethically.
• D) is when the agent has the opportunity to unfairly influence the principle.

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Definitions:

Host Countries

Nations where multinational corporations operate or have subsidiaries, apart from their home country.

Expatriates

Employees who are sent by their employers to work in a foreign country for a predetermined period.

Self-Evaluation

The process by which individuals assess their own performance, skills, and qualities, often in the context of a job role or career development.

Lack of Training

A situation where employees do not receive adequate instruction or education to perform their jobs effectively.