Which of the following best distinguishes adverse selection from moral hazard in the context of entrepreneurial finance?单项选择题

A

Adverse selection is resolved by monitoring; moral hazard is resolved by screening

B

Adverse selection involves hidden information about type; moral hazard involves hidden actions after contracting

C

Adverse selection arises after the investment is made; moral hazard arises before

D

Adverse selection only affects debt contracts; moral hazard only affects equity contracts

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