The buyer runs a risk of being sold a good of low quality when there is a principal-agent problem. a moral-hazard problem. a problem involving hidden actions. a problem involving hidden characteristics.

The buyer runs a risk of being sold a good of low quality when there is a principal-agent problem. a moral-hazard problem. a problem involving hidden actions. a problem involving hidden characteristics.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 11RQSC

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The buyer runs a risk of being sold a good of low quality when there is

a principal-agent problem.

a moral-hazard problem.

a problem involving hidden actions.

a problem involving hidden characteristics.

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