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Yanka [14]
4 years ago
10

When people have insurance against a certain event, the notion that those people are less likely to guard against that event occ

urring is called a _____________________ .
Business
1 answer:
sp2606 [1]4 years ago
4 0

Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>

Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;

However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

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The terms of a business combination can provide that former shareholders of the acquired firm may receive additional compensatio
Art [367]

Answer:

No, they wouldn't.

Explanation:

Any extra compensation to former stockholders of an acquired company which is based on post-combination share price or post-combination profits cannot be recognized as adjustments in the price of business combinations.

The reason for this is that changes in the fair value of contingent consideration (in case something happens) after the company has been acquired, e.g. achieving certain profits or stock price, are not considered period adjustments, therefore they cannot be included in the cost of the business combination (acquisition).

5 0
3 years ago
Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
In the short-run an increase in the costs of production makes a. output rise and prices fall. b. output and prices fall. c. outp
gtnhenbr [62]

Answer:

C) Output fall and prices rise

Explanation:

In an aggregate supply, aggregate demand model, price level is the Y axis, and output is the X axis. Supply is positively related with price: the higher the price, the more firms produce.

However, to produce someting, firms need to employ the factors of production: land, labor and capital. The wages firms pay to workers, and the rent firms pay for land and capital are the production costs. If these costs rise, then, the products will become more expensive.

This increase in price will be met with lower demand; less customers will be willing to purchase the product, and therefore, the firms will start producing less until reaching a new equilibrium.

7 0
3 years ago
A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third
Jobisdone [24]

Answer: Agency

Explanation: Agency refers to the relationship between an agent and a principal. A principal is someone who is in charge of or owns something. An agent is someone who acts on behalf of the principal in a particular situation. This is a consensual relationship, as the principal requests the agent to act on their behalf. However the agent needs to operate in such a way that there is no conflict of interest between the principal's needs and the agent's needs. The agent has to put the principal's needs first. The agent will then act according to the prinicipal's instructions when dealing with third parties.

6 0
3 years ago
Article 2 of the UCC deals with the sale of ___________. It does not deal with real property (real estate), services, or propert
yawa3891 [41]

Answer:

goods, common, predominant-factor

Explanation:

Article 2 of the UCC deals with the sale of <u>GOODS</u>. It does not deal with real property (real estate), services, or property such as stocks and bonds. Thus, if the subject matter of a dispute is goods, the UCC governs. If it is real estate or services, the <u>COMMON </u>law applies. If a contract involves both goods and services, the courts generally use the <u>PREDOMINANT-FACTOR </u>test to determine whether to apply the UCC

5 0
4 years ago
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