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jasenka [17]
3 years ago
15

Harmon opens a new restaurant, which he insures for twice its worth. Knowing his business is insured, Harmon becomes careless in

his management of the restaurant, with the result being that he suffers a bad fire which burns down his restaurant. This is an example of
Business
1 answer:
Arturiano [62]3 years ago
6 0

Answer:

Moral Hazard

Explanation:

Moral hazard is a situation which involves two parties, one party gets involved in a risky event because he knows that it is protected against the risk and that the other party will bear the cost and consequences of his actions if there be any loss. It arises when both the parties have incomplete information about each other.

In the financial market, there is high risk that a borrower may do undesirable things and may not pay back  if he knows that when he defaults, his guarantor might will pay. This can make him  to act with reckless abandon and in a riskier way.

Because Hamon in the Question got insurance that is worth twice his restaurant, he became careless in the management of his restaurant because he believes that if there be any loss, insurance will pay. This is called Moral Hazard in Business.

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During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wag
ella [17]

Answer:

$7,750

Explanation:

The computation of the net income for the first year is shown below:

but before that following calculations needed

The Cost of production is

= Direct material + Direct labor + Manufacturing overhead

= $11,625 + $11,000 + $10,000

= $32,625

The Unit product cost is

= $32,625 ÷  7,250 units

= $4.50 per unit

Now  

Cost of goods sold = Number of units sold × cost per unit

= 4,500 units × $4.50

= $20,250

And, finally

Net Income = Sales revenue - COGS - general, selling, and administrative expenses

= (4,500 units × $7) - $20,250 - $3,500

= $7,750

3 0
2 years ago
A major bank has an application where customers can see their balances in their checking accounts, the positions in their broker
Leokris [45]

Answer:

The correct answer is letter "D": The customer service center.

Explanation:

The customer service center is a web attractor that allows customers to self-assist in basic operations or by accessing basic data of their own. Balances, statements, payment history, and recent transactions are among the information consumers can access to in a blink of an eye thanks to this online data feed. In case a piece of information is unclear, this feed usually has direct access to reach a customer service representative for an explanation.

5 0
3 years ago
A manager with _______ skills has the ability to deal effectively with people inside and outside the organization.
dezoksy [38]
I whould say cumunication skills hope this helps
8 0
3 years ago
Read 2 more answers
The concept of target market as it pertains to marketing is defined as: Group of answer choices Dividing a market into groups ba
SSSSS [86.1K]

Answer:

The correct option is option D, that is A set of buyers sharing the common needs or characteristics that the company decides to serve.

Explanation:

The concept of target market is termed as the group of potential customers to whom a company wants to sell its products and services. This group also includes specific customers to whom a company directs its marketing efforts.

Thus

Option A is not correct as it is not the market target, it is the process of market segmentations.

Option B is not correct as it is a the market coverage strategy which targets several segments of the market.

Option C is not correct as it is a method of effective marketing.

So only option D is correct.

8 0
3 years ago
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
White raven [17]

Answer:

$14,300

Explanation:

Based on the information given we were told that the​ management of the company estimated that the amount in the uncollectible accounts will be the amount of $14,300 which means that the amount of $14,300 will be the balance of the Allowance for Bad Debts that should be reported on the company balance​ sheet.

5 0
3 years ago
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