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.
Answer:
The following scenarios from the listed are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States. They include;
1) The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
2) The variety of goods available to consumers
3) The costs of overfishing and other overly intensive uses of resources.
Answer:
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Explanation:
Staffing is the process of determining the manpower requirements of a company which are necessary to achieve its objectives. This includes appraising and selecting candidates to fill these requirements and orienting, training and developing new and existing staff.
Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern.
Answer:
The correct answer is 31 customers per day.
Explanation:
Consider the current capacity requirement as = x
Management wants to have a capacity cushion = 8%.
So the utilization is required = 100% - 8% = 92%
A process of currently services an average of 43 customers per day and utilization is 90%.
Expected Demand=70%= 70 ÷ 100 = 0.70
Current utilization = 90% = 0.90
Let Capacity requirement = X
Capacity requirement ÷ required utilization = Expected Demand rate × current service rate ÷ current utilization rate
X ÷ 0.92 = 0.70 × 43 ÷ 0.90
X = 0.70 × 43 ÷ 0.90 × 0.92
= 30.76 or 31
Needed capacity requirement is 31 customer per day.
Answer:
$56.19
Explanation:
Current stock price can be determined by calculating the present value of the dividend payments
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 4.35
Cash flow in year 2 = 5.45
Cash flow in year 3 = 6.65
Cash flow in year 4 = 61
I = 9.4
PV = $56.19
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
