Where information asymmetry exists, the capital market may attract the wrong kind of company. This is known as
A. moral hazard.
B. conservative accounting.
C. adverse selection.
D. an inefficient marketplace.
Answer:C
Where information asymmetry exists, the capital market may attract the wrong kind of company. This is known as
A. moral hazard. B. conservative accounting. C. adverse selection. D. an inefficient marketplace.