Keeping the paint away from an open flame.
Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
Answer:
$500
Explanation:
Damages refer to the financial loss suffered by a party to a breached contract. It occurs as a result of one party refusing to perform their obligation in the contract, causing injury and losses to the other.
Damages are the extra expense incurred by the offended party due to the breach of contract. The calculation of damages involves getting the difference between the market price and the contract price. For Diana, the damages will be the market price of $4.50, and the contact price $3.50. Because the books were 500, her damage would be 500 X 1 = $500.
IRS - Internal Revenue Service/Federal Government.
Answer:
$21,780
Explanation:
Calculation to determine what Jane's should report interest expense at December 31, 2021, in the amount of:
Interest expense at December 31, 2021=$198,000 x 11% x 12/12
Interest expense at December 31, 2021= $21,780
Therefore Jane's should report interest expense at December 31, 2021, in the amount of: $21,780
