Because of the moral hazard problem,
A) lenders will write debt contracts that restrict certain activities of borrowers.
B) lenders will more readily lend to borrowers with high net worth.
C) debt contracts are used less frequently to raise capital than equity contracts.
D) all of the above.
E) only A and B of the above.
E
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David listed his house for sale with Broker Paulson for $400,000. David told Broker Paulson it was imperative that the property be sold quickly. Broker Paulson showed the property to Henry and told him David was financially insolvent and would accept $380,000. Based on Broker Paulson's statement, Henry offered David $380,000 for his property. David accepted the offer. Concerning Broker Paulson's actions, which of the following is true?
a. Broker Paulson violated his fiduciary obligation to David since he acted in excess of his authority. b. When David accepted the offer, Broker Paulson's actions were vindicated. c. Broker Paulson's actions were proper since David stated he wanted an immediate sale. d. Broker Paulson interpreted David's wishes and produced a sale. Acceptance of the offer made Broker Paulson's actions acceptable.
The macro dimensions of the environment are economic, social and cultural, political and legal, and technological
Indicate whether the statement is true or false