The Use of Residual Income Reduces,but Does Not Eliminate,the Suboptimization

question 65

True/False

The use of residual income reduces,but does not eliminate,the suboptimization problem.

---

Definitions:

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially in terms of having the right to claim performance or compensation.

Donee Beneficiary

An external party that gains advantages from an agreement established between two different parties.

Delegation

The process of assigning authority and responsibilities to others to carry out specific activities or tasks.

Assignment Effective

The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.