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3 years ago

Which incentives do interest groups engage in to overcome the free rider problem?

Business

1 answer:

slava [35]3 years ago

6 0

Answer:

The correct answer is letter "D": All of these are correct.

Explanation:

The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.

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The federal deposit insurance corporation (fdic) insures each depositor at a commercial bank, savings and loan association, or m

Salsk061 [2.6K]

The amount the FDIC insures is $250,000

4 0

4 years ago

Using the interest formula, compute the interest and maturity values for each of the following notes: Principal Interest Term Ra

Ad libitum [116K]

Answer:

The answer is:

A: I=$76,67 MV=$4076,67

B: I=$293,75 MV=$10293,75

C: I=$138,125 MV=$6638,125

D: I=$36,75 MV=$936,75

Explanation:

Notes are often a key component of how a business finances its operations. For purposes of accounting, it's important to be able to calculate the maturity value of a note to know how much a business will have to pay or receive when the note comes due.

In general, notes are a form of short-term commercial financing. The maturity value is the amount of money that the company would receive when the note comes due.

When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula:

I = P*r*t

I= Total interest

P= principal

r= interest rate

t= time

To calculate the Maturity Value you need to sum the principal to the total interest accumulated over time.

Maturity Value= Principal + Interest

In this exercise:

A:

Principal: $4000 r=11,5% t=60 days

I=4000*0,115*(60/360)= $76,67

Maturity Value= 4000 + 76,67= $4076,67

B:

Principal: $10,000 r=11.75% t=90 days

I=10000*0,1175*(90/360)= $293,75

Maturity Value= 10000+ 293,75= $10293,75

C:

Principal= $6,500 r=12.75% time=60 days

I=6500*0,1275*(60/360)= $138,125

Maturity Value= 6500+ 138,125= $6638,125

D:

Principal= $900 r= 12.25% time=120 days

I=900*0,1225*(120/360)= $36,75

Maturity Value= 900+ 36,75= $936,75

4 0

4 years ago

The March 1 inventory of finished units at the Kay Company is 5,000. During March the company plans to sell 40,000 units and des

nordsb [41]

Answer:

C. 45,000 units

Explanation:

Inventory of finished units at March 31

10,000

Add:

Sales units

40,000

Total units

50,000

Less:

Inventory of finished units March 1

(5,000)

Balance

45,000

Therefore, the number of units that the company should plan on producing in March is 45,000 units

5 0

3 years ago

A checking account is a liability to a commercial bank. an asset to a commercial bank. a liability to the household or firm that

Zarrin [17]

Answer: liability to a commercial bank

Explanation:

A checking account is referred to as a form of bank account where the account owner can deposit and withdraw at ease.

It should be noted that a checking account is considered to be a liability to a commercial bank because the money can be withdrawn at any time by the owner of the account.

8 0

3 years ago

Describe the general processes that should be followed in managing risks throughout a project. Be sure to include the general se

Alexxandr [17]

Answer:

The risk management process can be summarised into simple but effective steps.

1. Identification / Recognition of Risk: You can't manage risk if you haven't identified it. Project risks can be very overwhelming. But here are some steps that can help you do so:

Consider every aspect of the project

Look at worst-case scenarios with respect to each milestone/aspect of the project. Ask the question "what is the worst occurent that can take place?"

Consulting an expert can also be a quick way to properly identify risks. This is so because they have many years of experience doing so. The downside to this is that it can be expensive.

Carrying out internal and external research

Getting regular feedback from employees. Employees are the ones who operate the process. Their experiences are invaluable.

Documenting and examining complaints from customers. This is one of the best ways of protecting one's brand for loss of equity. Customers are a strong gauge of whether or not the company is doing it right.

Once risks have been identified, they can be inserted into a Project Risk Register.

A project risk register is can be a hard document or an electronic document which itemizes all the risks relating to a project as well as their nature. It helps the project manager to keep an eye on all regulatory and compliance risks.

2. Risk Analysis

Risk analysis refers to the process of grouping risks according to their probability of occurence as well as their potential impact on the Project.

3. Risk Evaluation

This refers to the categorization of the risks according to the size of potential damage to the project if they occurred. Some of them will require urgent and or serious attention, others, on the balance of probability will require little or no treatment as their likelihood of occurrence and consequences are very low.

4. Transfer, Mitigate, or Eliminate the Risk

There are several ways to remove or reduce risks. Some of them are:

Use of policies: Policies modify and guide human behaviour within an organisation. When people do the right thing, there is less risk to worry about.
Use of contracts: Many of the risks which can affect a project can arise from the contract. Having a legal professional go through a contract can help to reduce risks associated with entering into the same.
Insurance: This is a risk transfer mechanism which allows an insurance company to take on the risks of a project or a business in exchange for a premium.

5. Continously review and monitor the Risks

The Project Risk Register is a good tool for reviewing and monitoring risks.

When there is a new development with the project, it is important to ask the question "how does this modify our risk exposure".

If for instance, the geographical location for a construction project has changed, this may significantly alter the risks universe of the project and needs to be reviewed/managed using steps 1-4 above.

Cheers!

3 0

3 years ago