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3 years ago

The moral hazard problem arises primarily because of

Business

1 answer:

muminat3 years ago

3 0

A moral hazard problem arises primarly because of Asymmetric information. Hope this helps

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Freemore Company has the following sales budget for the last six months of 2018: July $205,000 October $187,000 August 168,000 N

lisabon 2012 [21]

Answer:

Cash collections for October are $174,600

Explanation:

The following information are given for the amounts collected on sales:

month of sale = 55%

month following sale = 35%

second month following sale = 7%

sales uncollectible = 3%

For the month of October, the cash collections will be from July and October sales.

From July sales

October is the month following July sales, therefore, 35% of the sales from July will be collected in October.

July sales = $205,000

percentage collected in October = 35% = 35/100 = 0.35

∴ cash collected in October from July sales = 0.35 × 205,000 = $71,750

From October sales

55% of sales is collectible in the month of sales

Sales in October = $187,000

55% = 55/100 = 0.55

∴ cash collectible from October sales = 0.55 × 187,000 = $102,850

∴ Total cash collections in October = cash from July sales + cash from October sales

= 71,750 + 102,850 = $174,600

5 0

3 years ago

In relationship-based marketing, the focus is on enticing a buyer to make a purchase now based on such factors as low price, con

andrey2020 [161]

Answer: false

Explanation:

Relationship marketing looks at using customer service and quality of service as benchmarks in the companies marketing activities. They are developed at looking at lifetime relationship with clients. They are not about low price, convenience, packaging, or similar inducements now, these are factors for gaining a new client.

8 0

3 years ago

How can insurance protect you from financial loss?

RUDIKE [14]

Answer:

Answer:Insurance policies offer protection against economic loss, that is, loss or damage which can be measured in purely financial terms and compensated by money. When you buy homeowners property insurance.

Explanation:

When you buy homeowners property insurance, for example, you are insuring only the economic value of the home, i.e., the cost to repair or rebuild it.

6 0

3 years ago

To pay for your education, you've taken out $29,000 in student loans. If you make monthly payments over 10 years at 7 percent

Scrat [10]

Answer:

$169.07

Explanation:

Data provided in the question:

Loan amount = $29,000

Time = 10 years

Interest rate = 7% compounded monthly

Therefore,

Interest rate per period, r = 7% ÷ 12 = 0.583% = 0.00583

number of periods, n = 10 × 12 = 120 months

Now,

Loan amount = Monthly payments × [ { 1 - (1 + r )⁻ⁿ } ÷ r]

on substituting the respective values, we get

$29,000 = Monthly payments × [ { 1 - (1 + 0.00583 )⁻¹²⁰ } ÷ 0.00583]

$29,000 = Monthly payments × 171.53

Monthly payments = $169.07

7 0

3 years ago

Which idea forms the basis of double-entry accounting?

valina [46]

Answer:

A. For every single transaction, at least two accounts will be

affected.

Explanation:

Double-entry accounting is a record-keeping method where a transaction is recorded in a minimum of two accounts. There is no upper ceiling on the actual number of accounts that may be used in a transaction.

Every account has two columns, with debits on the left and credit entries on the right. The aggregate of the debit entries must equal the result of all credit entries. If this happens, the transaction has balanced. If not, the transaction is "out of balance."

5 0

3 years ago