Answer:
hedonic Theory of Wages:
Accept just two kinds of occupations in the work showcase (safe employments versus unsafe occupations). Under this, sheltered employments have likelihood of zero that specialist gets harmed. Unsafe occupations have likelihood of 1 and laborers know this. Laborers care about whether their occupations are sheltered or hazardous.
Laborers expand utility by picking wage-chance blends that offer them the best measure of utility. Expect laborers disdain hazard, yet to various degrees, for example they have diverse ideal pay chance blends. Firms are on their isoprofit bends that give the hazard wage mixes that give zero (financial) benefit. They vary between firms. An indulgent pay work mirror the connection among wages and occupation qualities. It matches laborers with various hazard inclinations with firms that can give employments that coordinate these diverse hazard inclinations.
Apathy bends uncover the exchange offs that a laborer favors among wages and level of hazard (chance thought to be an 'awful'). To give a similar utility, dangerous occupations must compensation higher wages than safe employments. The more prominent the laborer's aversion for hazard, the more prominent the pay off required for changing from a safe to an unsafe activity, and the more noteworthy the booking cost. As the pay firms bring to the table for hazardous occupations increments, less firms will extend to dangerous employment opportunities and bringing about a descending slanting interest bend as it turns out to be increasingly productive for firms to make occupations spare than to pay the higher compensation.
Suppositions of Differential Wage Theory are:
- The compensation differential is sure. Hazardous employments pay more than spare occupations.
- The balance wage differential is that of the last laborer employed (the peripheral specialist). It's anything but a proportion of the normal abhorrence for chance among laborers in the work showcase.
- Along these lines, everything except the minimal specialist are overcompensated by the market.
On the off chance that a few specialists like to work in dangerous occupations (they are eager to pay for the option to be harmed) and if the interest for such laborers is little, the market repaying differential is negative. At point P, where supply rises to request, laborers utilized in unsafe occupations acquire not as much as laborers utilized in safe employments. The outline given beneath shows the circumstance:
Isoprofit Curve:
As it is exorbitant to create well-being, a firm contribution hazard level P* can make the working environment more secure for example move left on flat pivot, just on the off chance that it diminishes compensation while keeping benefits consistent, so that the iso-benefit bend is upward slanting. Higher isoprofit bend returns lower benefit.
Answer:
17.71%
Explanation:
For this problem, we will be making use of the Capital Asset Pricing Model (CAPM) equation, as seen below:
ERi = Rf + β(ERm - Rf)
- ERi = expected return of investment
- Rf = risk free investment = 5.75%
- β = beta of the investment = 1.45
- (ERm - Rf) = market risk premium = 14% - 5.75% = 8.25%
ERi = 5.75% + (1.45 x 8.25%) = 5.75% + 11.96% = 17.71%
Answer:
The correct answer is : Planned Investment Spending
Explanation:
This is the spending which business plans to commit to during a special period of time. It is related to the interest rate. It is done in order to gain capital goods or stock and they are used to speed up the movement of cash in a company. This investment is intended by firms
After the balance sheet date with duplicate sales invoices and shipping documents.
<h3 /><h3>What is the risk of material misstatement?</h3>
The risk of major misrepresentation is the possibility that an organization's financial statements contain significant errors. Auditors evaluate this risk at the two levels listed below. The level of detection risk is reduced when the danger of material misstatement is high (increases the amount of evidence obtained from substantive procedures). The risk of an audit is decreased as a result.
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