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Hoochie [10]
3 years ago
7

Moral hazard is a situation when a. contract terms attract parties that have a higher preference for risk b. contract terms ince

ntivize applications of worse customers and repels better ones because of generous variable benefits, but high fixed-costs c. contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk d. contract terms repel parties that have a lower preference for risk
Business
1 answer:
monitta3 years ago
5 0

Answer:

contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk

Explanation:

A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.

Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.

Thus, from the above we can conclude that the correct option is C.

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Which of the following is considered a constructive delivery of a gift?
Hoochie [10]

Answer:

A) giving the key to a safe-deposit box where the gift is kept

Explanation:

  • A Constructive delivery possession is that acquisition when here a symbolic transfer of property. The constructive distribution of the possession is basically a right that the property is not actually managed
  • But the donor has done something to convey the possession, but the property is of such a nature that physical possession is then not possible, the creative possession of the property is sufficient to carry out the act of gift.
7 0
3 years ago
Define cash flow..............................
Y_Kistochka [10]
The total amount of money being transferred into and out of a business
5 0
3 years ago
Read 2 more answers
explain the difference between a change in quantity demanded and a change in demand. Provide a real world example of a factor th
Zina [86]

Answer:

A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa

A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.

Explanation:

Real word example of change in demand :

Changing Tastes or Preferences

From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.

Simply put it this way> Change in quantity demanded : Price change, quantity demanded change

Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference

6 0
3 years ago
Which of the quadrants in the service process matrix has low labor intensity and low​ customization?
DiKsa [7]
<span>C. professional service </span><span>
</span><span>Hope this helps.</span><span>
</span>
5 0
3 years ago
The following is a partial trial balance for the Green Star Corporation as of December 31, 2021:
choli [55]

Answer:

1. Single-Step Income

                         Income statement

Revenues and gains:                             Amount$

Sales revenue                                         1,400,000

Interest revenue                                     35,000

Gain on sale of investment                    <u>55,000     </u>

Total revenues and gains                       1,490,000

<u>Expenses and losses</u>

Cost of goods sold        740,000

General and administrative  80,000  

expenses

Selling expenses                   185,000  

Interest expense                    <u>45,000</u>

Total expenses and losses                     <u>1,050,000</u>

Income before income tax                      440,000

Income tax expense                                <u>-135,000</u>

Net income                                               305,000

EPS = Net income/Number of common shares

EPS = 305,000/100,000

EPS = 3.05

2.  Multi-Step Income

                               Income statement

Particulars                                               Amount$

Sales                                                               1,400,000

Cost of goods sold                                         <u>-740,000</u>

Gross profit                                                      660,000

<u>Operating expenses</u>

General and administrative  80,000

expenses

Selling expenses                    <u>185,000 </u>

Total operating expenses                               <u>-265,000</u>

Operating income                                             395,000

<u>Other incomes and expenses</u>

Interest revenue                       35,000  

Gain on sale of investment      55,000  

Interest expense                      -45,000

Total other income, net                                      <u>45,000</u>

Income before income tax                                 440,000

Income tax expense                                          <u>-135,000</u>

Net income                                                         <u>$305,000</u>

EPS = Net income/Number of common shares

EPS = 305,000/100,000

EPS = 3.05

3 0
3 years ago
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