Jack started a construction company. To protect his personal assets from the claims of creditors and claimants, he decided to incorporate the business. Incorporating the business illustrates which method of risk treatment?

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.

A technique that helps employees deal with change that includes them in the decision-making process is ________

A) education and communication B) negotiation C) participation D) coercion