Accounting Multiple Choice Question – 7 May 2025

The ability of markets to allocate resources efficiently within a financial system is often impeded by the existence of market imperfections.

Which ONE of the following is a market imperfection regularly associated with financial markets?

Select ONE answer:

1. Lack of codes of practice
2. Insider dealing
3. Lack of regulation
4. Lack of public relations management

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > The lack of codes of practice, regulation and public relations management contribute to rather than detract from the efficiency of markets in resource allocation.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.