Answer:
moral hazard
Explanation:
Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.
Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.
In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.
The rights which Nobel economist Friedrich von Hayek, law that secures and was a prerequisite to private enterprise is
<h3>What is Property Rights?</h3>
This refers to the inalienable rights which a property owner has as to how he chooses to rent, lease, let or sell his property or live there.
With this in mind, we can see that the main thing which Friedrich von Hayek believed was a prerequisite to private enterprise was property rights.
Read more about property rights here:
brainly.com/question/14106012
Making each manager personally responsible for his/her department
Answer:
True
Explanation:
The statement is true, roles and responsibilities are very important in family business. Relatives regularly fill more than one job in the organisation so as to keep it running. Likewise, if the administration covers and family jobs and duties are uncertain to everybody, opposition or even absolute battling is bound to happen in light of the fact that the individuals included know each other well indeed.
