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nekit [7.7K]
3 years ago
10

Marika received a tip from a close friend who is an executive manager of a publicly traded company called MicroGreen Inc. The ma

nager received some inside information about how to trade MicroGreen stock to get a huge profit. He shared this information with Marika. This scenario is an example of___________.
Business
1 answer:
saveliy_v [14]3 years ago
7 0

Answer:

<u>Information asymmetry.</u>

Explanation:

Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.

This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.

But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.

Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.

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When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific o
Dahasolnce [82]

Answer: Environmental partnerships.

Explanation:

It is important to understand that for most and all business to thrive there have to be an enabling environment for that to happen. Environment play a key or major role to the growth of any business and as such most business pay keen attention to their environment and do every means to ensure it is vulnerable for them to operate well. The partnership between organizations and seeking a operational environment to do their business is known as environmental partnership.

3 0
3 years ago
In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1
blsea [12.9K]

Answer: 0.78 pound mark exchange rate

Explanation:

The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.

According to PPP, the pound-mark exchange rate in 2003 will be calculated as:

= 280/360

= 0.78

6 0
2 years ago
Generally speaking, a narrow span of management implies that the height of the organization will be ____; a wide span of managem
Pani-rosa [81]
<span>a narrow span of management implies that the height of the organization will be long; a wide span of management implies that the height of the organization will be short.

This is because in a narrow span of management, less people work under each manager and therefore, there will be more levels of hierarchy making the height of the organization longer and the vice versa applies.
</span>
6 0
3 years ago
The people and groups that supply a company with its productive resources, and thus have a claim on and a stake in the company,
Leviafan [203]

Answer: Stakeholder

Explanation:

 The stakeholder is the person in an organization that manage all the external and the internal function or the stake of the business.

The main objective of the stakeholder is to managing all the resources, stake, knowledge and the materiel of the company and it also provide some interest to an organization.

According to the question, the stakeholder is basically supply the various types of productive resources ti the firms and then claim on the stake in an organization and this is known as stakeholder.

Therefore, Stakeholder is the correct answer.  

8 0
3 years ago
Cash equivalents are highly liquid investments that are bothA : money market funds and have a maturity date of one year or less.
Ber [7]

Answer:

D : readily convertible and very close to their maturity dates.

Explanation:

Cash equivalents are current liquid assets and comprise cash in hand,  cash at the bank, and short term investment whose maturity is in three months or less. A company's total value of cash and cash equivalents is recorded at the top line of the balance sheet as a current asset. They are the most liquid asset of a company.

For an asset to be classified as a cash equivalent, it must have the ability to convert to cash easily. Its value should be relatively stable and be determined with ease. Cash equivalents indicate the financial strengths of a business and its ability to offset the current liabilities.

5 0
3 years ago
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