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
timofeeve [1]
3 years ago
10

The so-called moral-hazard problem in financial management refers to the fact that managers will tend to take on more risk if th

ey know that they are somehow insured against some or all of their losses.
(A) True
(B) False
Business
1 answer:
MArishka [77]3 years ago
7 0

Answer: TRUE

Explanation: Moral hazard refers to the situation when an individual starts taking avoidable risk unnecessarily when he or she is aware of the fact that any potential loss will be bore by the third party and not him.

Thus, if the manager is taking more and more risk knowing that they are insured is a clear example of moral hazard. Hence, the given statement is true.

You might be interested in
Debating provides citizens with the opportunity to be informed about current events, discuss important issues, work together and
ale4655 [162]
Hey there!

Your answer is:

D, none of these.

Hope this helps!
Have a great day! (:
6 0
3 years ago
Read 2 more answers
If the note bears interest at 12%, how many months has it been outstanding?
icang [17]

Answer:

The answer is The enthusiasm of 12% every year levels with a month to month rate of 1%; month to month intrigue is $91 ($9100X 1%). Since aggregate intrigue cost is $91, the note has been exceptional multi month  

Explanation:

Ascertaining interest month-by-month is a fundamental expertise. You'll frequently observe financing costs cited as a yearly rate, yet some of the time it's more useful to know precisely how much that means in dollars and pennies. We usually think as far as month to month costs.  For instance, you have month to month service charges, sustenance costs, or an auto installment. Intrigue is likewise a month to month (if not day by day) occasion, and those repeating interest counts signify huge numbers through the span of a year. Regardless of whether you're paying enthusiasm on an advance or gaining enthusiasm for a bank account, the way toward changing over from a yearly rate to a month to month loan cost is the equivalent.

6 0
3 years ago
Match the legislation with the correct description.
jeka94
Equal pay act is obviously C
3 0
3 years ago
What level of management is responsible for originating capital budgeting proposals?
Bess [88]

It is the work of all level of management.

Companies use capital budgeting to analyze large projects and investments, such as new factories or equipment. The technique involves assessing a project's financial inflows and the  outflows to see whether the expected return is within a certain range. Capital budgeting methodologies include discounted cash flow, payback, and throughput studies.

Accountants provide this information, giving ownership the first tool it requires to start preparing the capital budget. Accounting firms often provide predictions of future earnings and the costs of alternative financing solutions to help management make decisions.

Therefore, the answer is all level of management.

To know more about capital budgeting click here:

brainly.com/question/24301148

#SPJ4

6 0
2 years ago
What makes government contracts unique?
Vika [28.1K]
They create obligations normally applied to government agencies
5 0
4 years ago
Read 2 more answers
Other questions:
  • An industrial tool manufacturer relies on a particular distributor network. This distributor network has the largest online outl
    15·1 answer
  • Most people in the US own stocks or bonds primarily through
    7·1 answer
  • The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will
    12·1 answer
  • A promise to pay a supplier from the business with no requirement for payment of interest:
    9·1 answer
  • According to classical macroeconomic theory, changes in the money supply affect: _________.(i) nominal variables, but not real v
    15·1 answer
  • You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. One annuity will pay $2,
    10·1 answer
  • Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering
    8·1 answer
  • The internet makes it more difficult to participate in international trade.<br> A True<br> B False
    14·1 answer
  • Who wants a girl to lick
    7·1 answer
  • How does email marketing help companies nurture customers?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!