Answer:
Upon buying a car with airbags Indy begins to drive recklessly. This is an example of moral hazard problem.
Explanation:
- A moral hazard problem occurs when an individual or party in a contract decides to take risk due to the assurance that the consequences of such kind of a risk shall not affect them.
- In the above context, Indy takes the risk of driving recklessly which might result to a road accident. However, she does this intentionally since she knows her life is covered and might be rescued by the air bag in case of an accident.
Answer:
The process of identifying which objectives to accomplish, deciding how to accomplish those objectives with specific strategies and tactics, implementing the actions that make the plan come to life, and measuring how well the plan met the objectives is best known “Strategic planning “
Explanation:
In strategic planning;
1.you clarify your vision
2. Gather and analyze information
3.formulate a strategy
4.implement your strategy
5. Control.