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. corporate governance.
B. moral hazard.
C. shared value creation.
D. adverse selection.
Answer: D
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The best definition of assets is the
a. cash owned by the company. b. resources belonging to a company having future benefit to the company. c. collection of resources belonging to the company and the claims on these resources. d. owners' investment in the business.
When a firm changes to a JIT operating and management philosophy,
a. it attempts to increase the number of suppliers it has for each item it uses to ensure a reliable flow of materials into the production process. b. it seeks out the lowest-cost bidder for supplies in order to minimize costs. c. it works more closely with fewer suppliers. d. all of these are correct.
A supervisor on the night shift at a manufacturing plant is told to dump chemicals used in the refining process rather than dispose of them properly according to safety regulations. The owner of the company insists that the chemicals are not harmful to the environment, but the supervisor knows that the dumping is illegal. The supervisor believes that he will lose his job if he reports the problem
to authorities at the Environmental Protection Agency. This is an example of which potential cause of unethical behavior? a. obsession with personal advancement. b. excessive emphasis on profits. c. uncertainty about whether an act is wrong. d. Unwilling to stand for what is right.
Acquisition of services in many organizations is referred to as ______.
a. service contracting b. procurement c. sourcing d. acquisition