Answer:
indirect loss, cannot be
Explanation:
Indirect losses refers to a type of loss that incurred outside of circumstances that usually occur in normal operation. (such as loss because the government created a certain type of law or loss because people are conducting strikes on other areas of our business)
Insurance companies can't cover Indirect losses because these costs tend to be really unpredictable and extremely hard to be measured . They will specify that they wouldn't cover these types of loss during the initial cotnract.
Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.
I think the correct answer from the choices listed above is the last option. A corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources amongthose businesses. Hope this answers the question.
The answer is opposite direction as <span>goods and services.
In the circular flow model, the expenditures on goods and services will be paid by the households to the producers/
The direction of goods and services (products) on the other hand, will be given by the producers to the households.
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According to empirical research, in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
<u>Explanation</u>
A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party
<u>The moral hazard problem is </u><u>less </u><u> severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.</u>
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So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
