Financial Management

1:

The "information effect" refers to the notion that

A.

a corporation's actions may convey information about its future prospects.

B.

management is reluctant to provide financial information that is not required by law.

C.

agents incur costs in trying to obtain information.

D.

the financial manager should attempt to manage sensitive information about the firm.

 

Answer : A

Explanation :

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Option: A

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