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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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one theory behind ____ is that the best outcome to civil ______ is a _____ and that parties will move toward agreement if they u
Leviafan [203]

Answer:

The correct answers that fills the gaps are: discovery, litigation, negotiated settlement, examine, evidence.

Explanation:

The litigation is a conflict of interest qualified and elevated to a jurisdictional authority, by a subject of law, with an intention or claim against another that manifests a resistance or that opposes the approach of the former, as Francisco Carnal suggests.

Some authors consider that the concept of litigation only applies to civil proceedings in contractual disputes, and that the term controversy should be used in criminal proceedings. However, progress has been made regarding this idea, because now, in criminal proceedings, civil action or damages are usually used, which gives rise to extra contractual liability.

5 0
3 years ago
CII, Inc., invests $630,000 in a project expected to earn a 12% annual rate of return. The earnings will be reinvested in the pr
Gelneren [198K]

Answer:

$1,956,684

Explanation:

As the project has a expected annual return, we have to calculate future value of this investment to find how much money Cll, Inc. will have after 10 years to reinvest.

We know,

FV = PV × (1 + i)^{n}

Given,

Present Value, PV = $630,000

Annual rate of return, i = 12% = 0.12

Number of period, n = 10 years

Putting the value into the above formula, we can get,

FV = $630,000 × (1 + 0.12)^{10}

FV = $630,000 × 3.105848

FV = $1,956,684

$1,956,684 can be reinvested after the liquidation of 10 years.

8 0
3 years ago
What is an outstanding check?
Solnce55 [7]

<span>An outstanding check is a check issued by the payor and released to the payee that remains to be undeposited or uncashed check at a certain financial period. When reconciling the bank statements with company books, an outstanding check is deducted from the unadjusted bank balance to arrive at the adjusted bank balance.  </span>

3 0
3 years ago
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 72000 units on hand, t
Lyrx [107]

Answer:

"The budgeted cost of goods sold" for June would be $5,640,000

Explanation:

Sales department budget for June = 220,000  units

Less-Opening balance as on 1st June = 72,000  units

Add-Closing balance as on 30th June = 40,000  units

No of unit manufactured = Sales department budget for June  - Opening balance as on 1st June + Closing balance as on 30th June

= 220,000 - 72,000 + 40,000

= 188,000  units

Cost per unit = $30

Budgeted cost of manufactured = 188,000 × $30 = $5,640,000

4 0
2 years ago
True or false: An unchanging marketing communication program is critical to the success of every company. True false question. T
Rina8888 [55]

Answer:

false

Explanation:

you keep changing to what the people want because that t what the will buy new ideas because someone else will.

3 0
2 years ago
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