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irga5000 [103]
3 years ago
7

When one party to a transaction has incentives to engage in activities detrimental to the other party, there exists a problem of

:________A) Moral hazard.B) Split incentives.C) Ex ante shirking.D) Pre-contractual opportunism.
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer: Moral hazard

Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.

There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.

Thus, from the above we can conclude that the correct option is A .

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Critically discuss the economic importance of the secondary sector to the south African economy.​
LuckyWell [14K]

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4 0
3 years ago
In the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical
earnstyle [38]

Answer: closed shop

Explanation:

From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.

It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.

7 0
3 years ago
Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month
marusya05 [52]

Answer: $1091.61

Explanation:

From the question, we are told that fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract and that this year, he began receiving a $1,300 monthly payment that will continue for his life and based on his age, he can expect to receive $312,000. The amount of each monthly payment is taxable income to Mr. Fairhold goes thus:

Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:

= $50,000/$312,000

= 0.1603

Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:

= $1,300 × 0.1603

= $208.39

Taxable annuity payment will now be:

= $1300 - $208.39

= $1091.61

6 0
3 years ago
geographic information systems (gis) can be used by the retailer for all of the following except: select one: a. mapping geograp
Hunter-Best [27]

Geographic information systems (gis) can be used by the retailer for all of the following except: c. establish sales budgets.

Geographic information systems is a type of database containing geographic information, combined with software tools for dealing with, studying, and visualizing the ones information.

A Geographic records device (GIS) is a computer gadget that analyzes and presentations geographically referenced facts. It uses records that is attached to a completely unique area. maximum of the data we have about our international contains a region reference.

Learn more about Geographic information systems here:brainly.com/question/13210143
#SPJ4

5 0
9 months ago
Why do internal users need financial data?
AnnyKZ [126]

Answer:

C. to invest in stocks and make business decisions

6 0
2 years ago
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