The self-interest of the provider of financial information (whether an individual or a business entity) often runs directly counter to the interests of the user of the information.

Required:

a. Give an example of such opposing interests.

b. What may be done to compensate for the possible bias existing because of the self-interest of the individual or business entity providing the financial information?

Answer rating: 100% (QA)

a An individual or a company has to provide financial information to a bank when applying for a loan ... View the full answer