Question

Bad firms

a. do not have an incentive to make themselves look good.
b. will slant the information they are required to transmit to the public.
c. both do not have an incentive to make themselves look good and will slant the information they are required to transmit to the public of these.
d. neither do not have an incentive to make themselves look good nor will slant the information they are required to transmit to the public of these.

Answer 1

The correct answer is b.

Step-by-step explanation:

Options c and d don't make sense since there's only one option (bad firms). Firms operate under a for-profit logic, so it doesn't matter if they're good or bad, all firms have an incentive to make themselves look good as a good image means consumers and other firms will make business with them. But bad firms will slant the information they are required to transmit to the public, because they calculate that the cost of them giving deliberately misleading or wrong information is higher than not transmitting slanted information.