Answer: Option C
Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.
In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.
Answer:
D) $801
Explanation:
Businesses can only deduct $25 per gift per client, in this case the client's wife is not an actual client, so Sue can only deduct $25 for the gift plus the wrapping expenses. She can also deduct the $400 spent in the calendars and the $370 watch.
Sue's total deductions = $25 + $6 + $400 + $370 = $801
Answer:
Due to organizational loyalty
Explanation:
In simple words, an individual who is committed to their work or organization will still work at his or her best if even if they are not very satisfied with the their current conditions. This is due to the loyalty that they develop over time. These strong feelings somehow force them to give their best and make them realize that this is not a permanent situation and things will change in future.
Answer:
d. Transactions exposure.
Explanation:
Transactions exposure -
It is the level of uncertainty involved in a business in the international trade face .
It is the risk which currency exchange rates would fluctuate after the firm has taken a financial obligation .
The high level of vulnerability to shift the exchange rates can lead to the loss of the major capital for the international business .
Hence from the information of the question , the correct answer is d. Transactions exposure .
Answer:
Free cash flow (FCF) for next year = $ 6,450 million
Explanation:
<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.</em>
<em>It is computed as cash flow made from operation less capital expenditures</em>
For Blur Communications
The Free cash flow
= EBIT (1-T) - increase in capital expenditure - increase in working capital
= 7600 - $1,140 - 10
= $ 6,450 million
Free cash flow (FCF) for next year = $ 6,450 million
