Answer:
 Option D             
Explanation:
In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party. 
Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.     
 
        
             
        
        
        
Answer:
Effect on income= -$22,000 decrease
Explanation:
Giving the following information: 
Contribution margin $30,000
Fixed expenses ($40,000)
Net operating loss ($10,000)
<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>
<u></u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 8,000 - 30,000
Effect on income= -$22,000 decrease
 
        
             
        
        
        
Answer:
b) Equal payments and an infinite life
Explanation:
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.
 
        
             
        
        
        
Answer:
$628.49
Explanation:
Cash flows                     Discount factor      Future value
$100                         1.1449                $114.49
$200                         1.07                   $214
$300                          1                        $300
Future value                                                  $628.49
The discount factor is as follows
= (1 + interest rate)^number of years
For $100 the year is 2
For $200 the year is 1
For $300 the year is 0
 
        
             
        
        
        
Answer:
$60,000 or $12,000 
Explanation:
1. Since Zack expects Sparky to use the developed software for a period of five years, we could assume that the revenue for the first year of the contract would be $60,000.
2. Or if we Spread out the average revenue for a period of five years from the licensing fee, 60,000 / 5 (years) would give us 12,000 dollars per year.