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nata0808 [166]
3 years ago
14

Regular bank examinations and restrictions on asset holdings indirectly help to reduce the ________ problem because, given fewer

opportunities to take on risk, risk-prone entrepreneurs will be discouraged from entering the banking industry.
Business
1 answer:
Murrr4er [49]3 years ago
6 0

Answer:

The correct answer si moral hazard.

Explanation:

Moral hazard corresponds to opportunistic behavior in which one of the parties seeks their own benefit at the cost of the other being unable to observe or be informed of their conduct.

Moral hazard appears in the markets with asymmetric information. One party has private information about their conduct while others cannot obtain this information.

Given this asymmetry, individuals take greater risks, make less effort or take advantage of certain circumstances since they know that the cost of their actions will fall on other people.

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What is the difference between limited liability and unlimited liability
SOVA2 [1]

Answer:

Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.

Explanation:

5 0
3 years ago
The irr can lead to incorrect project rankings because projects with much higher npvs may also have:______.
Sav [38]

The IRR can lead to incorrect project rankings because projects with much higher NPVS may also have <u> </u><u>longer project lives.</u>

Certain projects may have a very high IRR and may only last a year. Therefore, a project with a slightly lower IRR and lasting several years may be favored over a project with a higher IRR. NPV correctly ranks these projects when ranking from highest NPV to lowest NPV.

A project is an undertaking, individually or collectively, involving carefully planned research and design to achieve a specific goal.

Another view of project management is to think of it as a series of events or "a series of related tasks to be performed over a specified period of time and within specified costs and other constraints."

A project is a temporary (rather than permanent) social system (work system) set up by a team (intra-organizational or inter-organizational) to accomplish a specific task under time constraints. in some cases.

learn more about the project here.  brainly.com/question/26711803

#SPJ4

8 0
2 years ago
. Following sound accounting practices is the first step to good financial management. t or f
marysya [2.9K]
This is also true. :)
6 0
4 years ago
Read 2 more answers
What are the three arguments against the trend towards globalization
worty [1.4K]

First is the export earnings. Through liberalisation of tariff and trade, export-oriented industries are required to be developed.

Second is the foreign capital flow, mainly via multinational corporations (MNCs) that bring technology.

Third is the deregulation of financial sector so that cross border mobility of resources gets momentum. In addition, trade policy, exchange rate policy, industrial policy, etc. are all relaxed. As the process of globalisation strengthens, all producers depend on global networks which establish links from the stage of raw materials to the final stage of delivery and marketing.

8 0
4 years ago
The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its varia
notsponge [240]

Answer:

transfer cost $25

Explanation:

The minimum transfer price is equal to the marginal price.

The marginal price, in this case, will be the variable cost, because there is no additional fixed cost related to the transfer:

This should be analyzed like a special order request, only the variable cos matter unless we incur in additional fixed cost.

Marginal Cost = Variable cost: 25

4 0
4 years ago
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