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3 years ago

Choose the correct statement.

Business

1 answer:

Natasha2012 [34]3 years ago

3 0

Answer:

D.All of the above are correct.

Explanation:

Moral hazard is when people have an incentive to engage in risky behaviours when the person is protected against the consequences of such risky behaviour. Moral hazard can arise in health insurance because once insured, a person has less incentive to adopt a healthy lifestyle.

Adverse selection occurs due to asymmetry of information; when one party in a transaction has more information than the other party. An example of adverse selection In insurance - people who have dangerous jobs are more likely to purchase insurance when compared with people with relatively safer jobs. Adverse selection in health insurance is when healthiest people choose to be uninsured, at least during their younger years and become insured when they are getting older and more sickly.

I hope my answer helps you.

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Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare th

Tresset [83]

Answer; c. $14,000

Explanation

On December 1, rent had been paid for 3 months. At a rate of $7,000 a month this will come to;

= 7,000 * 3

= $21,000

The Prepaid rent account will reduce every month by the rent due for that month. The balance on the Prepaid account as at December 31 will therefore have reduced by one month from December 1.

= 21,000 - 7,000

= $14,000

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4 years ago

Abby is so satisfied with her green grocer that she refers her friends and colleagues, providing a(n _______ benefit of maintain

Vesnalui [34]

The most appropriate answer is d. marketing. By developing and maintaining good relationships with customers, businesses can benefit by getting 'free' marketing or advertising. Real customers who are satisfied with a particular product or service are better able to convince potential customers. Businesses benefit in this way by improving the visibility of their brand.

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3 years ago

A legal obligation that involves repaying a debt is called a _____.

Semenov [28]

In business this would be referred to generally as a liability (money that is owed).

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3 years ago

Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $90 each. Direct materials cost $15 per

pogonyaev

Answer:

The gross profit margin for the cat condo is 50%

Explanation:

Since the gross profit per unit is not given, so first we have to find it. The calculation is shown below:

= Selling price per unit - Direct materials cost per unit - direct labor costs per unit - Manufacturing overhead per unit

= $90 per unit - $15 per unit - $10 per unit - $20 per unit ( $10 per unit × 200%)

= $45 per unit

Now apply the Gross profit formula which is shown below:

= (Gross profit per unit ÷ selling price per unit) × 100

= ($45 per unit ÷ $90 per unit) × 100

= 50%

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3 years ago

Pina Colada Corp. had the following transactions during 2022:

LenaWriter [7]

Answer:

D. $(254100)

Explanation:

CASH FLOW FROM FINANCING ACTIVITIES:

<em>Cash Receipts From:</em>

1. Issuance of Stock $302,500

4. Dividend $(24,200)

10. Repayment of Loan $(532,400)

Net Cash Flow from Financing Activities $(254,100)

2. It is Operational Activity.

3. It is Investing Activity.

5. It is Investing Activity.

6. It is Operational Activity.

7. It is Operational Activity.

8. It is Investing Activity.

9. It is Investing Activity.

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3 years ago