1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stich3 [128]
2 years ago
9

Moral hazard in a transaction hurts:____.

Business
1 answer:
Verizon [17]2 years ago
4 0

Moral hazards usually solely impact the buyer. However, since no situations are specified,<u> the answers A and C are both acceptable</u>. In a transaction involving moral hazard, both parties could get hurt, suffer losses.

When one of the parties (whether it is the buyer or the seller) to a contract or agreement can take risks without worrying to face a repercussion, moral hazard may basically exist. In this case, either the buyer or the seller gets hurt in a transaction.

Actually, the phrase "moral hazard" describes a circumstance in which a buyer or a seller lacks the motivation to take precautions against a risk. Why? Simply because they are going to be shielded from any possible losses or fallout.

If you need examples of witnessed moral hazard in the workplace, read here: brainly.com/question/26367615

#SPJ4

You might be interested in
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cos
Elina [12.6K]

Answer:

FCF years 1 is $43,000

NPV is $13,300

Explanation:

The free cash flow for the first  year=net income+depreciation-Capital exp

net income is $13,000

depreciation is $30,000

capital exp for the first year is nil

the free cash flow=$13,000+$30,000+$0=$43,000

FCF year zero=-$90,000

the FCF for year1 applies to years 2 and 3 as well

NPV=-$90,000+$43,000/(1+12%)^1+$43,000/(1+12%)^2+$43,000/(1+12%)^3=

$13,278.74

The closest option is $13,300

8 0
4 years ago
Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 3.5%; scenar
lys-0071 [83]

Answer:

2. 20 years under scenario A, versus 16 years under scenario B

Explanation:

It is clearer if I explained with an example:

Let suppose that a nation´s real GDP for 2018 was 1000. In scenario A you will have:

2019:1000*3.5%=1035

2020:1035*3.5%=1071,2

and so on, the same for scenario B

2019: 1000*4,5%= 1045

2020: 1045*4,5%= 1092

and so on.

I attached an excel table where you can see that: in the first scenario, between year 20 and 21 (2038 and 2039) the GDP will double and in the second one, between year 15 and 16 GDP will double. The answer is 2.

4 0
4 years ago
Public choice theory suggests that politicians will be most likely to favor redistribution of income from the rich to the poor.
Murrr4er [49]

Answer:

The correct answer is unorganized taxpayers to well-organized interest groups.

Explanation:

Public choice theory seeks to study the problems of political science applied to economics. A positive public election means that the decisions of politicians face the needs of civil society. In the case of the example, it is easy to determine towards whom the work of people in political positions should be oriented, and it is by definition to unorganized communities with some type of unsatisfied basic need.

4 0
3 years ago
Read 2 more answers
The manager is responsible for training you about food safety in your job duties. The most important of these include: Preparing
IceJOKER [234]
I would believe that it would be showing you when and how to wash your hands properly. Because if an employee doesn't have clean hands than the food isn't safe to consume. So I would say the third option.
Hope this helps!
<3
5 0
3 years ago
Read 2 more answers
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small
andre [41]

Answer:

$500,000

Explanation:

in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale

In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000

5 0
3 years ago
Other questions:
  • When consumers started using cell phones, it became evident to technology corporations that helping consumers find a way to "sho
    11·1 answer
  • What circumstances a prisoner might be predesignated to a different correctional facility?
    11·1 answer
  • Why are conflicts of interests a problem in business? (Select the best answer.)
    12·2 answers
  • The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has p
    13·1 answer
  • Using your knowledge of SMART goals, select the best goal. I will start saving money toward a new house next week. I will save $
    10·1 answer
  • Jonah had $25 to spend. He
    11·1 answer
  • Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On
    11·1 answer
  • The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this
    11·1 answer
  • Sanborn Company has 10 employees, who earn a total of $2,100 in salaries each working day. They are paid on Monday for the five-
    13·1 answer
  • A survey of regular customers by Raufel Electronics revealed an increased interest in lifestyle products. Customers were more in
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!