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Vitek1552 [10]
2 years ago
12

I am a rational and risk-averse person, and I have an option of making the following bet: I receive $500 cash, after which I rol

l a normal 6-sided die. Whatever I roll, I must pay $200 times the value of the roll of the die (so if make the bet and roll a ‘2’, I get $500, then have to pay out $400, thus I win $100 in total). 10. If my goal is to maximize my personal utility, should I accept this bet, and does my exact level risk aversion affect whether or not I should accept the bet? I should accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does matter There is not enough information to determine whether I should accept the bet or not; the precise level of my risk aversion does matter
Business
1 answer:
Tamiku [17]2 years ago
4 0

Answer:

I should not accept the bet; the precise level of risk aversion does matter.

Explanation:

Risk averse person is the one who is not willing to take the risk even if he is given high returns. Risk averse person will always avoid the risks. In the given scenario the person is risk averse. If he rolls out the dice he has to pay $200 times the dice number which means he just have two chance (dice rolls 1 or dice rolls 2) for getting return otherwise he will loose the bet and he will have to pay money from the pocket.

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Which of the following is not generally regarded as a legitimate reason for gov't to intervene in a market?
Bess [88]

Answer:

C. To enforce property rights

Explanation:

Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.

Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .

Government budget is anual financial statement showing economy's expected revenue & expenditure .

Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .

Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .

However all these are progressive legitimate reason for govt. Intervention .

But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.

7 0
3 years ago
Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the comp
faltersainse [42]

Answer:

Correct option is (d)

Explanation:

Corporate social responsibility is an initiative taken by companies to act for the benefit of the society. Since companies utilize resources from the society, it their responsibility to give back to the society in the form of charity to non governmental organizations, welfare of underprivileged and protecting the environment.

Here, though Enron was undertaking unethical means for personal benefits, it was also carrying out corporate social responsibility by donating to Houston area charities.

4 0
3 years ago
How to establish a positive work environment
quester [9]
-no distractions
-clean working area
-full night's rest
-large cup of coffee (optional)
8 0
3 years ago
Tyler Jones is authorized to prepare and sign checks for the company. He also enters the checks Into the ledger. He wrote a $500
Natali [406]

Answer:

A. All checks require two signatures.

Explanation:

Internal controls refer to the checks and balances that an organization puts into place to ensure its financial transactions' integrity. They are the measures and regulations that safeguard against fraudulent transactions, especially in the finance department. Internal control protects business assets from theft and misuse by malicious employees.

Requiring all transactions to be approved by a senior officer is a control measure that would have prevented Tyler Jones from succeeding in stealing. In this case, the check would have to be signed by a second person. The second signature serves as an approval.

3 0
3 years ago
During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need
atroni [7]

Answer:

They are:

1) Intensive growth

2) Integrative growth

3) Diversification growth

Explanation:

1. Intensive growth:

This involves identifying further growth opportunities that are available within existing businesses. It identifies new customer groups for growth within current businesses, develop additional distribution channels or selling in new markets such as those in other countries. If this is insufficient the company may look into Integrative growth.

2. Integrative growth:

The second involves involves backward, forward, or horizontal integration. Horizontal integration involves buying smaller competitors.

Backward integration reaches into value chain to get suppliers. Forward involves buying distribution channels in the value chain closest to the customer. Integrative growth identifies opportunities to acquire businesses that are in relation to current businesses.

3. Diversification:

Diversification growth is to identify opportunities so as to add attractive unrelated businesses

8 0
3 years ago
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