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Kay [80]
3 years ago
11

What is the moral hazard​ problem?a. The problem that managers of a financial firm will take on riskier investments because they

believe the federal government will save them from bankruptcy. b. The problem that managers of a financial firm may have more information about risky investments than the federal government does. c. The problem that managers may experience in distinguishing​ low-risk borrowers from​ high-risk borrowers before approving a mortgage.
Business
1 answer:
s344n2d4d5 [400]3 years ago
3 0

Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)

Explanation:

Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.

The financial crisis of 2008 is the best example of the Moral Hazard Problem.

The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that  the federal government will save them from the bankruptcy.

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Company A has a shorter Average Collection Period than Company B using the formula 365 / (Credit Sales / Average AR Balance). Wh
Irina-Kira [14]

Answer:

Statement B is correct

Explanation:

Provided Information that,

Company A has shorter Average Collection Period than Company B,

Average Collection Period refers to the period in which the cash is collected from debtors.

Thus in the given statements only statement B states that Company A is more efficient in collecting receivables from debtors, thus it is the correct statement.

Statement A is wrong as Company A has less Average Collection Period, thus it's credit sales percentage would be higher than Company B.

Statement C which states about generating revenue is not correct as the company might have cash sales.

Statement B is correct

3 0
3 years ago
What information does a supply schedule provide?
lesya [120]

Answer:

See below

Explanation:

A supply schedule shows the quantities that suppliers are willing to sell in the market at different prices. It is a table format with quantity on one column and prices on another. As per the law of supply, high prices lead suppliers to supply more at the market.

The supply schedule illustrates in a table format the relations between the price and the quantity supplied. It will show how the quantity increase as prices increases. The supply schedule is a tabular representation of the supply curve.

7 0
3 years ago
Pina Corporation entered into an operating lease agreement to lease equipment from Badger, Inc. on January 1, 2017. The lease ca
posledela

Answer:

= $80,273

Explanation:

Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease

                  = $82,773 -$ 6,000 + $3,000 + $500

                     =$80,273

4 0
3 years ago
When Corinne asked why she didn't get the job, the manager replied, "I needed someone who understood basic accounting practices
OLga [1]

Answer:

The aspect of career readiness the manager feel Corinne was lacking was Knowledge

Explanation:

Career readiness is the preparation and process of acquiring skills, knowledge, talents that are required to start a career, maintain one's position in such career and grow.

The aspect of career readiness the manager feel Corinne was lacking was Knowledge because see made a statement that implied that Corinne lack basic understanding of accounting practice.    

Knowledge  is an aspect of career readiness that has to do with the theoretical or practical  understanding of a subject matter. It is the information, skills and facts gained through experience and education.

Other skills that are acquired in the process of career readiness are communication skills, human relation skills, critical thinking skills etc.

5 0
3 years ago
To find out which ads and other marketing strategies are working, many companies ask customers how they _____ about the company
Lyrx [107]

To find out which ads and other marketing strategies are working, many companies ask customers how they have heard about the company or product.

Most businesses ask how you found out about their service/product. By asking this question, they are able to track where their marketing efforts are working and where they are not. If they are advertising in one place and it's not reaching consumers, it may be worthwhile for them to take out advertisements there and move them to another place.

5 0
3 years ago
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