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    Exam 1: The Canadian Financial Reporting Environment
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    Where Information Asymmetry Exists, the Capital Market May Attract the Wrong
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Where Information Asymmetry Exists, the Capital Market May Attract the Wrong

Question 43

Question 43

Multiple Choice

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.

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