An audit is one way for investors to insure against at least part of their loss should the company they invest in fail – this is an example of
A. agency theory.
B. information hypothesis.
C. insurance hypothesis.
D. competing incentives.
Answer:C
An audit is one way for investors to insure against at least part of their loss should the company they invest in fail – this is an example of
A. agency theory. B. information hypothesis. C. insurance hypothesis. D. competing incentives.