Question 1. It is argued by some researchers that even in the absence of regulation, organisations will have an incentive to provide credible information about their operations and performance to certain parties outside the organisation; otherwise, the costs of the organisation's operations will rise. What is the basis of this belief?

Question 2. What is an active market, and is an active market likely to exist for intangible assets such as brand names or development related expenditures? Explain your answer.