When the parties to a deal have access to different information:
A. markets may fail to exist in such cases.
B. parties will voluntarily share information truthfully in order to achieve efficiency.
C. markets will be efficient.
D. parties will blindly trust one another.
Answer: A
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Indicate whether the statement is true or false
Directors can make opportunistic choices to advance their personal interest when:
a. they plan to sell off the corporation stocks at inflated prices. b. they hold majority of the stocks in the corporation. c. they are aware that the cost of forming a new board of directors is high. d. their personal returns from the well being of the corporation is high.