Question

Because information is scarce Question 1 options: A) monitoring managers gives rise to costly state verification. B) government regulations, such as standard accounting principles, have no impact on problems such as moral hazard. C) helps explain why equity contracts are used so much more frequently to raise capital than are debt contracts. D) developing nations do not rely heavily on banks for business financing.

Answer 1

A) monitoring managers gives rise to costly state verification.

Step-by-step explanation:

Because information is scarce monitoring managers gives rise to costly state verification.