Answer:
First let us define the nature of each of the following as per Balance sheet of a company:
Payroll payable- Liability
FICA taxes withheld- Liability
Federal taxes- Liability
410(k)- Liability
Explanation:
Effect of Transaction on assets and liabilities:
- Payroll expense Debit will have no impact
- Payroll payable, Federal taxes, FICA and 401(k) will increase the current liability.
- And when they are subsequently paid, cash will be credited hence decreasing the current assets and all these current liabilities shall be debited, hence decreasing the current liability portion.
(1) c. Offers a negative-sounding apology
(2) c. Fails to offer a clear explanation
Explanation:
At the closing part of the letter, a negative sounding apology can demoralize the employees.
Hubert should have offered a well-informed explanation without sounding negative.
The letter can be re-written as follows:
Date: May 10
To: All Employees
From: Anne Leller Manager, Classic Car Restoration Inc.
Subject: Three Shelby Mustangs
You all have to work overtime next week because we must have the three 1965 Shelby Mustangs ready for Bruce Willis, one of our best clients.
We need to make sure to use all original engine parts and add a top-of-the-line clear coat on all three cars.
Additionally, the client purchased the original radios for each car, so we should install those too.
I apologize for any inconvenience, unfortunately, I am unwilling to make exceptions to this request at this point of time. However, you will surely receive an additional bonus for working overtime along with your salary.
Answer:
1. The difference between : Moral Hazard
<u>Intentions </u> - An individual is aware of what he is doing and intentionally goes for the risk because he knows he is covered and will gain as the payment or any related cost to sustaining an injury or a loss will not be paid by him but will be paid for by the insurance as it covered. Actions are intentional and potential risks increases as the behavior becomes irresponsible and careless.
Morale Hazard
<u>Intentions </u> - An individual's behavior unintentionally changes and so does the attitude toward the insured item changes. Here an individual losses responsibility unintentionally and unconsciously acts reckless as they know know it is insured.
main difference are intentions
Moral Hazard is an important concept to insurance companies because Insurance companies need to know the intentions of the person, insurance is not for gain but for cover against the possibility of a risk and the person insured should not seek for the risk and actually drive the risk or be the cause of the risk occurring.
2. No, I do not think it should be eliminate. it is obvious that moral hazard does in a way seem like it is encouraging bad behavior but risks must be insured. The insurance companies should enforce some claim charges for this kind of insurance.
Explanation:
<span>The value of money is mainly tied to the inflation rate prevalent at that time. The federal reserve's job is to prevent disinflation and maintain inflation at a moderate rate (2-3%). They are able to accomplish this through monetary policies such as controlling the LIBOR rate which affects short term interest rates between banks, which in turn should affect short-term interest rates everywhere. They also accomplish this by buying and selling bonds in the open market to increase and decrease the money supply in order to spur the economy or slow down the economy.</span>
First,
calculate the area of the vacant land by multiplying the given dimensions.
<span> Area = (80
ft)(200 ft) </span>
<span> Area
= 16000 ft^2</span>
Then,
multiply the calculated area with the given price per ft^2.
<span> Total
price = ($2000/ft^2)(16,000 ft^2)</span>
<span> Total price
= $32,000,000</span>
The
10% commission of selling the land is equal to $3,200,000.
The
money that the broker will receive will be 60% of the commission.
<span> =
(0.6)($3,200,000)</span>
<span> =
<span>$1,920,000</span></span>
