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3 years ago

Employers can try to overcome the moral-hazard problem involving their employees by:

Business

1 answer:

BartSMP [9]3 years ago

5 0

Answer:

Option D

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.

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Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par common stock. Alpha pa

lidiya [134]

Annual preferred dividend = 0.07*40*1500 =$4,200

Since there was a one year dividend arrears to preferred stock holders, the total amount that goes to preferred stockholders = 4,200 + 4,200 (arrears of previous years) = 8,400

So common stockholders received = 10,000-8,400 = $1,600 in dividends

So dividend per share for common shareholders =1600/2200 = $0.727/share

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3 years ago

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shar

Kay [80]

Answer:

The journal entries have been given as under;

Explanation:

Cash 15,000*12 Dr.$180,000

Common Stocks 15,000*10 Cr.$150,000

paid in capital-common stock 15,000*(12-10) Cr.$30,000

Cash 5,000*51 Dr.$255,000

Preferred stocks 5,000*50 Cr.$250,000

Paid in Capital-preferred stock 5,000*1 Cr.$5,000

Cash 60,000*15 Dr.$900,000

Common Stocks 60,000*10 Cr.$600,000

Paid in Capital-common stocks 60,000*(15-10) Cr.$300,000

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3 years ago

Consumers should be concerned about high interest rates because high interest rates __________.

Dafna1 [17]

I believe that the answer is... increase the cost of credit purchases

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3 years ago

The position that is in charge of keeping track of how caucus members are planning to vote and communicating leadership position

Andru [333]

In the given statement above, the one responsible of these duties and the roles that is played above are the Majority and the Minority Whips in the Senate as they are responsible of having to keep tract vote on the upcoming bills and communicating to the leaders in regards with legislative votes.

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3 years ago

Erosion can best be explained as the:

Tems11 [23]

Answer:

A. loss of current sales due to a new project being implemented.

Explanation:

In business, erosion takes place when a new product or project competes with another product or project from the came company. This "internal" competition reduces the revenues and benefits from existing products or projects. It is basically a form of business cannibalization, where the left arm takes away from the right arm. E.g. newer smartphone models decrease the sales revenue from existing (older) models.

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3 years ago