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Charra [1.4K]
3 years ago
14

Which of the following is not an example of moral hazard? Investment banks use 40-1 leverage, knowing that if the market collaps

es, the government will come to the rescue. Domestic automobile companies fail to design high-quality fuel-efficient cars, hoping that the government will save them if oil prices skyrocket. A backcountry skier takes an excessively dangerous run, knowing that local rescue crews will come to his aid if he gets in an accident. Insurance companies stopped offering insurance policies in New Orleans after a major hurricane, knowing the government will offer subsidies to draw people back.
Business
1 answer:
Rus_ich [418]3 years ago
7 0

Answer: Insurance companies stopped offering insurance policies in New Orleans after a major hurricane, knowing the government will offer subsidies to draw people back. <u>Is not an example of moral hazard.</u>

<u></u>

Explanation: In this case the insurance company <u>is looking for its own benefit.</u>

To be an example of moral hazard, the subject should not try to avoid the risk, beyond being exposed to it.

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Verve, a successful soap manufacturer, sells luxury soaps exclusively for women under the brands Verve Opulent, Verve Imperial,
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It will be verve divine
5 0
4 years ago
to what extent do you think the 'big four' supermarkets should change their strategies and adopt the discounter model?
rusak2 [61]

The major four grocery chains are known as the "Big 4," with Tesco, Sainsbury's, Asda, and Morrisons maintaining their dominance for many years.

<h3>What changes should be brought by the big four?</h3>

Discounters have been expanding their market share, and by 2020 this is predicted to increase. If the big four don't alter their strategy, they risk losing ground. When it comes to net profit margin, the discounter model appears to be more efficient.

The major four Especially if profitability is the primary emphasis of business objectives, you might wish to adopt some components of the method, such as having some discount lines, concentrating on smaller product lines, becoming leaner, and reducing administrative costs.

Depending on how they perceive their own strengths and shortcomings as well as the chances and challenges that lie ahead, they may come to different conclusions.

Learn more about the discounter model, from:

brainly.com/question/14852055

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6 0
1 year ago
Healthy Foods has a book value per share of $32.68, earnings per share of $3.09, and a price-earnings ratio of 16.8. What is the
hammer [34]

The market-to-book ratio is 1.59%

<h3>How does market to book ratio work?</h3>

A financial valuation statistic called the Market to Book Ratio, commonly known as the Price to Book Ratio, is used to assess how a company's current market value compares to its book value. The current stock price of all outstanding shares represents the market value (i.e. the price that the market believes the company is worth).

<h3>How do you interpret a high market to book ratio?</h3>

A high book-to-market ratio could indicate that the stock of the company is being valued by the market below its book value. The price-to-book ratio, which is only the opposite of the book-to-market ratio formula, is well-known to investors.

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8 0
2 years ago
Silver Corporation has provided the following information concerning its raw materials purchases. The budgeted cost of raw mater
kakasveta [241]

Answer:

$171,619.20

Explanation:

The computation of the budgeted accounts payable balance at the end of November is shown below:

= Budgeted cost of raw materials purchases in November × following month percentage

= $286,032 × 60%

= $171,619.20

As 40% is paid in the month of purchase whereas 60% is paid to the following month. So, we recognized 60%, not 40%

4 0
4 years ago
Consider the demand for socks. What would cause a movement from one point on the demand curve to a point further down the curve?
NeTakaya

Answer:

(B) A big sale on socks

For a movement along the demand curve the reason has to be a price factor as all other factors shift the supply curve to the right or left. In this case the a big sale on socks would mean that the price of the socks is decreasing, which will move the point on the demand curve further down on the curve as the demand curve is downward sloping, and a decrease in price would move the point of quantity traded further down to the curve.

Explanation:

6 0
4 years ago
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