Nate Is a Recent Graduate Who States That He Has

Multiple Choice

Nate is a recent graduate who states that he has interned at a major accounting firm so that his value as a candidate for employment increases. A start-up recruits Nate based on his stated credentials without verifying them. Two days into the job, Nate's team lead realizes that Nate does not know much of what he claimed to know during the interview. This scenario best exemplifies

A) moral hazard.
B) adverse selection.
C) shared value creation.
D) corporate governance.