Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)
Explanation:
Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.
The financial crisis of 2008 is the best example of the Moral Hazard Problem.
The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that the federal government will save them from the bankruptcy.
E. Individuals in the country may pursue their own economic growth and self-interest by doing whatever is best for them
Explanation:
Answer:
Selling price= $172.8
Explanation:
Giving the following information:
Manufacturing costs to be $ 240.00 per air conditioner
Consisting of 60% variable costs and 40% fixed costs.
Selling price= 20% markup to full costs.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:
Unitary cost= 240*0.6= $144
Selling price= 144*1.2= $172.8
Answer:
Trademark.
Explanation:
Trademark is a type of intellectual property that involves use of a unique design to legally differentiate a product from others in the market. It shows a particular product belongs to a company.
Elizabeth should first of all get a trademark on her picture frames so that they will be legally protected from copying by others.
Answer:
The balance sheet amount for trading securities will be 12,000
Explanation:
The trading securities are valued at fair value, their diference through dates will generate Other Comprehensive Income.
For the matter of valuation, the gain/loss is not relevant. We just need to multiply market value with the number of shares to get the total for each company, then we add them to get the total for trading securities.
![\left[\begin{array}{cccc}-&shares&market \:price& subtotal\\CHARLIE&100&22&2200\\DELTA&200&34&6800\\ECHO&100&30&3000\\Total&400&-&12000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26shares%26market%20%5C%3Aprice%26%20subtotal%5C%5CCHARLIE%26100%2622%262200%5C%5CDELTA%26200%2634%266800%5C%5CECHO%26100%2630%263000%5C%5CTotal%26400%26-%2612000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The balance sheet amount for trading securities will be 12,000
