Harvard School of Business Law Asymmetric Information Essay

Description

Your focus will be on what asymmetric information, moral hazard, and adverse selection have to do with corporate hiring staff accountants.InstructionsConsider the following statement:Many corporations require all staff accountants to hold not only a degree in accounting but also to have a CPA license. There is a substantial higher cost to hiring CPAs.In your discussion post, address the following:Speculate on why corporations do not lower their explicit payroll cost by hiring accountants without a CPA. Consider how asymmetric information, moral hazard, and adverse selection may impact the perception of risk.

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