1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
serg [7]
3 years ago
5

Suppose Cho comes into a large sum of money and decides to lend it out to

Business
1 answer:
Ierofanga [76]3 years ago
8 0

Answer:

C. Adverse selection.

Explanation:

Adverse selection occurs when the participants in a economic transaction do not have the same amount of information about each other: either the buyer has more information than the seller, or the seller has more information than the buyer.

In the question, we have an example of adverse selection because Cho does not have enough information about the buyers (the borrowers), and she does not have a good way to obtain that information.

For that reason, she decides to give the money to the bank, an institution with much more capacity and information about the borrowers. Like this, she is solving the problem of adverse selection.

You might be interested in
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million. The investment will result
Tems11 [23]

Answer:

The payback period for this project is 2.43 years.

Explanation:

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.

The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.

The payback period is the time it takes to cover the investment to be covered by returns.

The investment cost remaining in the first year

= $1,850,000 - $525,000

= $1,325,000

The investment cost remaining in the second year

= $1,325,000 - $812,500

= $512,500

The third year payback

= \frac{\$ 512,500}{\$ 1,200,000}

= 0.427

The total payback period

= 2.43 years

6 0
2 years ago
When people are injured in a car accident, they need an auto insurance representative to help them
pentagon [3]

Answer:

a file a claim

explanation:

because of the car accident and the injured people they have to file a claim to pay for the car repair and injuries

4 0
3 years ago
Read 2 more answers
A firm that has the ability to control to some degree the price of the product it sells
Llana [10]
I believe the answer is Monopolist.
8 0
3 years ago
At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doub
nignag [31]

Answer:

See below

Explanation:

The net realizable values are as follows

ai For accounts receivables

Ending balance of account receivables = Beginning balance of account receivables + Credit sale - Collections uncollectible amount

= $187,800 + $860,400 - $687,720

= $360,480

aii For allowance for doubtful debt

= Beginning balance + Previously written off amount - Uncollectible amount + Bad debt expense

= $9,630 + $2,859 - $7,381 + $18,412

= $23,070

6 0
2 years ago
Brenda is a new employee orientation trainer for a global corporation with subsidiaries all over the world. She needs to convey
iren [92.7K]

Answer:

High context cultures are heavily dependent on non verbal cues and subtle situational cues while communicating with others. In such cultures a person's reputation, prestige, status in society are considerably important.

Explanation:

In high context cultures are complete contrast to low context. In low context cultures, communication takes place clearly through language and rules of communication are clearly stated. While on the other hand in high context cultures, communication is subtle through body language, tone of voice, person's status etc. The use of contextual elements is more.

5 0
3 years ago
Other questions:
  • The rise of internet marketing has become particularly important in doing business in the b2b markets.
    11·1 answer
  • University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation
    7·1 answer
  • A perfectly competitive firm initially is earning a normal profit. Then, a decrease in demand for the firm's product occurs. Of
    12·1 answer
  • A client heard through its hotline that John, the purchases journal clerk, periodically enters fictitious acquisitions. After Jo
    12·1 answer
  • On January 1, goods were picked up by a FedUp Delivery, Inc. The goods arrived at the customer's place of business on January 12
    15·1 answer
  • erest rate parity holds. The U.S. interest rate is 13 percent and the British interest rate is 10 percent. The forward rate on B
    11·1 answer
  • The beliefs, attitudes, and behavior associated with a person or group; a way of life.
    12·1 answer
  • Insurance sales, tax preparation, personal financial advising, and investment fund management are careers in which workers can b
    7·2 answers
  • Lloyd Inc. has sales of $450,000, a net income of $36,000, and the following balance sheet:Cash $148,770 Accounts payable $117,4
    14·1 answer
  • Differences in personalities among individuals?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!