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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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South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all state agencie
choli [55]

<u>Answer:</u> This approach is called attrition.

<u>Explanation:</u>

Attrition is the process of reducing the workforce of the company due to various reasons. Here South Carolina has lot of budget constraints which forces the state to reduce the in take of new employees. This approach can also be called as hiring freeze so that the payroll can be reduced instead of doing layoffs.

The strength of the state is reduced in order to reduce the expenses and money pay outs. When there is a deficiency in the budgets actions have to be taken accordingly to minimize the effects.

8 0
3 years ago
How are we affected by international business?
ollegr [7]
Globalization of business has affected man in many ways.
In term of communication, businesses has to learn and abide by the culture of the places where their companies are located. They have to learn and abide by the political and legal regulations that are operating in the place. Cross - cultural communication challenge has to be overcome with sensitivity and openness.

4 0
3 years ago
Sunland’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $21000 Direct Labor 6000
algol13

Answer:

$9,000

Explanation:

Total variable cost of manufacturing the components are as follows;

Direct materials $21,000

Direct labor 6,000

Variable overhead 3,000

————

Total $30,000

If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;

$39,000 - 30,000 = $9,000 (unavoidable fixed cost)

7 0
3 years ago
What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence
worty [1.4K]

Answer: steering

Explanation:

Steering is an illegal practice whereby people that are looking for homes are channeled towards particular areas based on their social status or race.

In such scenarios, the choice of the person looking for a home is being influenced by the person's gender, color, race, status, religion, disability, or national origin.

5 0
3 years ago
Nursing home kitchens, corporate employee lunchrooms, and state park concession stands are all examples of? A. noncommercial foo
Basile [38]

Answer:

D

Explanation:

D because you have to keep up with demand

3 0
3 years ago
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