The Possibility for Recipients of Funds in Foreign Countries to Engage

question 130

Multiple Choice

The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called

• A) inequitable financing.
• B) moral hazard.
• C) adverse selection.
• D) asymmetric information.

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Definitions:

Authoritarian

A leadership style characterized by strict control, lack of participative decision-making, and a top-down approach to directives and policies.

Democratic

Relating to or supporting democracy or its principles, where power is vested in the hands of the people, often through elected representatives.

Formal Position

An officially recognized or established role within an organization, typically accompanied by specific duties, responsibilities, and levels of authority.

Legitimate Power

A form of authority where power is granted through an organizational structure or societal norms.