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b) In the context of financial reporting, explain 'signalling theory'. As part of your answer, explain how signalling relates to Akerlof's 'market for lemons' (QUE,

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b) In the context of financial reporting, explain 'signalling theory'. As part of your answer, explain how signalling relates to Akerlof's 'market for lemons' (QUE, 1970). [6 marks)

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