The type of goal they set is referred to as medium term goal. There are three types of goal, short, medium and long term goals. Short term last for a maximum of two years, medium term goal last for a maximum of five years while long term goal can last up to ten years.
Answer:
Howe receives $304,500 from the issue
Explanation:
The bond issue price is made up of the 99% price plus the interest accrued from the last date of interest payment to the date of bond purchase.
The amount to be received from the bond issuance is calculated thus:
99% price 300*$1000*99% $297,000
Accrued interest 3/12*10%*$1000*300 $7,500
Total amount received from the issue $304,500
Since the next payment of interest would be paid to the buyer,it is expected that the buyer pays the seller for interest accrued on the date of purchase that would eventually be paid to the buyer
Answer:
The yearly economic cost for Fred's accounting business is $142,000.
Explanation:
Economic costs include both the explicit costs and the implicit costs.
Explicit costs are the expenditure on factors of production purchased from outsiders.
Implicit costs are the opportunity cost of owner provided resources.
Other expense is an explicit cost.
Foregone salary and foregone rent are the implicit costs.
So,
Economic cost = Foregone salary + Foregone rent + Other expenses
Economic cost = $95,000 + $22,000 + $25,000 = $142,000
Thus,
Answer:
Health insurance: working without safety equipment
Car insurance: reckless drive
Health insurance: withhold of the information that the insured is a smoker
Car insurance: withhold of the information that insured lives in neighborhood with high crime levels
Explanation:
Moral hazard relates to the behavior that enlarges the possibility of occurrence of undesired events that is insured. In health care the example could be a person that does risky jobs without wearing safety equipment. That is something that can easily lead to that person's deterioration of health at job. In car insurance, that can be reckless drive of an insured. Adverse selection happens when for instance signee of policy insurance withholds certain information, whose revelation would have potential elevating effect on paid premiums. In healthcare it could be non-disclosure of the information that the insured is a smoker, where in the application says otherwise. In car insurance it could be withhold of the information that the insured lives in the neighborhood with high crime level, while in the policy it is stated otherwise.
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