1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksana_A [137]
3 years ago
9

A business owner applies for a bank loan to launch a fairly low-risk project. After receiving the loan, she cancels the low-risk

project and instead uses the borrowed funds for a high-risk venture. This is an example of
Business
1 answer:
Dahasolnce [82]3 years ago
7 0

Answer:

Moral hazard

Explanation:

The moral hazard refers to the situation in which the person has the benefit to increase the risk as it does not bear or suffered the whole risk

According to the given situation, it is mentioned that the business owner canceled the low risk project and used the borrowed funds for taking high risk in the venture after loan receiving

This situation represents the moral hazard scenario

You might be interested in
Dmitri is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: B
kondaur [170]

Answer:

Decision on the margins

Explanation:

Pool time seems to be having a greater effect at the moment, it makes sense for his to spend a bit more time in the pool and a bit less time on the bike.

However, this does not mean that it makes sense for her to spend all his time in the pool and no time on the bike. If he cut out all training on the bike, the value of a little bit of bike training might be higher than the value of the last hour of pool training. Dimitri does not treat biking versus swimming as an all-or-nothing decision. He makes small changes at the margin in the number of hours spent training for each activity.

Also they both realise that his time is fixed (20hrs) and anytime he wants to spend extra on one activit, is time he cannot spend on another (opportunity cost).

They are both trying to improve Dimitri's total time (exploiting opportunities to makes themselves better off).

An assumption that Dimitri realises that as he spends more time in the pool improving his swim time, his run and cycle times will suffer. As he swims more, his improvement is likely to slow down, while spending less time on cycling and running will cost him progressively more in terms of time.

Conclusion Dimitri is looking at the margins. His wife on the other hand, is not, she is ignoring the interaction, may be forgetting the decreasing improvements in swim and increasing deterioration in the other 2 legs.

4 0
3 years ago
Read 2 more answers
Scale is not as important as style when decorating a room<br><br> A. True<br> B. False
Paul [167]

Answer:

b

Explanation:

once a style is chosen all pieces should be in the designated style

6 0
3 years ago
Prior to adjustment at August 31, Salary Expense has a debit balance of $322,200. Salaries owed but not paid as of the same date
Phantasy [73]

Explanation:

The Journal entry is shown below:-

a. Salary Expense Dr,             $2,550

          To salaries payable                $2,550

(Being accrual of salary is recorded)

b. Income summary Dr,           $324,750

        To Salary expense                    $324,750

($322,200 + $2,550)

(Being closing of salary expense is recorded)

4 0
3 years ago
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growt
maw [93]

Answer:

The Current share price is $94.79

Explanation:

Dividend Growth Model determines the share price of a company which offers perpetual dividend with stable growth. It is the expected dividend of a share divided by the net return rate of growth rate .

According to given data

Last dividend = D0 = $3.40

Rate of return = 15%

Growth rates:

For 3 years = 29% per year

After 3 years = 7.3% in perpetuity

Dividend after 3 years = D3 = 3.40 x ( 1 + 0.29 )^3 = $7.30

We can calculate the price of share using following formula:

Price of share = D3 / Rate of return - Growth rate

Price of share = $7.30 / 15% - 7.3% = $7.30 / 7.70% = $94.79

4 0
3 years ago
Characteristics of just-in-time partnerships do NOT include: long-term contracts. removal of in-transit inventory. large lot siz
otez555 [7]

Answer: large lot sizes to save on setup costs and to gain quantity discounts.

Explanation:

Just in time is the kind of system where your material or component arrives just when you require them and does not take up time. This is helpful in saving storage cost. Just in time however, does not include large lot sizes to save on setup costs and to gain quantity discounts.

8 0
3 years ago
Other questions:
  • In the event a policy is delivered by an agent to the insured, and the premium payment is to be collected at the time of this de
    9·1 answer
  • Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a p
    6·1 answer
  • When a business asks "What business are we in?" they are: a. conducting an environmental analysis. b. defining their business mi
    15·1 answer
  • Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight
    7·1 answer
  • In its first month of operations, Splish Brothers Inc. made three purchases of merchandise in the following sequence: (1) 155 un
    8·1 answer
  • December 2017, Becker Corp. learned of a favorable judgement of 1.5 million relating to litigation involving a competitor. The c
    5·1 answer
  • What does COBRA status allow you to do?
    5·1 answer
  • Discuss how a fragmented audience is both a challenge and an opportunity for sports and entertainment marketers?
    10·1 answer
  • On February 1, a customer's account balance of $2,700 was deemed to be uncollectible. What entry should be recorded on February
    11·1 answer
  • Cala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $31,900 to tear down
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!