According to empirical research, in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
<u>Explanation</u>
A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party
<u>The moral hazard problem is </u><u>less </u><u> severe in bond markets than in stock markets. In addition, moral hazard arises in bond markets when firms issue bonds with high default risk.</u>
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So it is appropriate to say that , in countries where stockholders' rights are strong, firms issue <u>More </u>stock than in countries where stockholders' rights are weak. Researchers conclude that strong stockholders' rights <u>reduce</u> moral hazard in stock markets.
Answer:
a. Advertisement cost relative to number of customers <u>Fixed
</u>
b. Rental cost relative to number of restaurant <u>Variable
</u>
c. Cooks salaries relative to number of customer <u>Fixed
</u>
d. Cost of Supplies (cups, plates, spoons, etc.) relative to number of customer <u>Variable
</u>
e. Manager's compensation relative to number of customer <u>Mixed
</u>
f. Servers' salaries relative to number of Restaurants <u>Variable</u>
I'd say D, thatd be my best guess
I’m sorry I don’t know the answe