Discussion, What asymmetric information, moral hazard, and

Question

Context For this discussion, your focus will be on what asymmetric information, moral hazard, and adverse selection have to do with corporate hiring staff accountants. Also see the help provided in the discussion preparation. Instructions Consider 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.

To earn full credit for your discussion, you must complete one post and one follow-up or reply to a classmate. Make sure both the post and the reply focus on the questions asked. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.