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:
The correct answer is option A.
Explanation:
A production possibility curve shows the maximum possible combination of two goods that can be produced using all the available resources and state of technology.
An increase in economic growth causes the production possibility curve to shift to the right. The faster the economic growth the more the economy will be able to produce. So the farther the production possibilities curve will shift out.
Answer:
Jason did a good job; everything is correct. (we can assume that he rounded the balance to whole dollars).
Explanation:
Since this is not organized and no picture is included, you cannot tell how Jason organized the accounts.
I used an excel spreadsheet to organize the check register because there is not enough room here.
Answer:
Dec 31 2018
Debit. Stock $919,600
Credit. Supplier $919,600
Narration. Records of stock purchase under non cancelable agreement with supplier.
Dec 31 2018
Debit profit or loss 50,500
Credit. Stock. 50,500
Loss on carrying value of stock compare to realisable value.
