This is an example of a moral hazard. This is a condition
in which one party gets convoluted in a dangerous occurrence knowing that it is
sheltered in contradiction of the risk and the other party will suffer the
cost. It arises when mutually the parties have imperfect information about each
other.
Answer:
$200 million
Explanation:
Data provided in the question
Number of granted restricted stock = 40 million at $1 par common shares
The market price per share = $5
So, the total compensation cost is
= Number of granted restricted stock × market price per share
= 40 million × $5 per share
= $200 million
Basically we multiplied the number of granted restricted stock with the market price per share
Answer:
False
Explanation:
A sole proprietorship is owned and managed by a single person. The owner is responsible for all the decisions and actions of his or her business. The owner may hire workers to assist in running the business. The workers remain workers and not partners in the business.
The law does not distinguish between the business and the owner. Any liabilities arising from the business are considered to be the owner's liability. In this wedding situation, the sole proprietor is solely responsible for the mistakes of his assistant.
Tragic flaw is a literary device that can be defined as a trait in a character leading to his downfall, and the character is often the hero of the literary piece. This trait could be the lack of self-knowledge, lack of judgment, and often it is hubris (pride).