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vichka [17]
2 years ago
9

As a​ bank, you make a loan to an individual seeking funds to open a coffee shop. When the loan is​ made, the borrower uses the

funds to take a vacation to Greenland. This is an example of:
Business
1 answer:
Simora [160]2 years ago
4 0

Answer: Moral hazard

Explanation:

Moral hazard is regarded as a risk that a party has not entered into a contract in good faith or has provided misleading information about its assets,liabilities , or credit capacity.

In addition to that ,moral hazard also may mean a party has an incentive to take unusual risks in a desperate attempt to earn a profit before the contract settles.

Themoral hazard also occurs when one party in a transaction has the opportunity to assume additional risks that negatively affect the other party.

The decision is based not on what is considered right, but what provides the highest level of benefit, hence the reference to morality.

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Paramount electronics has an annual profit given by p = −100,000 + 5,000q − 0.25q2 dollars, where q is the number of laptop comp
guajiro [1.7K]
<span>P= -1000,000 +5000q - 0.25q2 q= 30n + 0.01n2 n = 20 substituting for q in P P= -100,000 + 5000(30n+0.01n^2) - 0.25(30n+0.01n^2) dp/dn = 5000*30+2*0.01*5000 - 0.25*2(30n+0.001n^2)+30+2*0.01n dp/dn = 0.005n^2 +85.02n+150030 substituting for n=20 and solving dp/dn = 151,732</span>
4 0
2 years ago
Read 2 more answers
Juan purchased shares in ABC company for​ $5,000 three years ago. During these three years he received​ $600 in dividends. He ju
7nadin3 [17]

Answer:

B) –2%

Explanation:

The total return on an investment is calculated by,

Total Return = Capital gains ÷ Initial Investment x 100

First we will have to calculate capital gains of his investment,

He got 600 in dividends and 4,300 after selling the stock against the initial investment of $5,000.

So capital gains,

= 600 + 4,300 - 5,000

= -100

Total Return would be,

= -100 / 5,000 x 100

= -2% is the total return on his investment.

7 0
2 years ago
Benton Lamps applies overhead using direct labor hours. Budgeted total overhead cost was $472,000 and estimated direct labor hou
GREYUIT [131]

Answer:

Allocated MOH= $158,000

Explanation:

Giving the following information:

The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4*39,500= $158,000

4 0
2 years ago
Scenario: An organization has recently suffered a series of security breaches that have significantly damaged its reputation. Se
Rina8888 [55]

Answer:

Vulnerability analysis

Explanation:

Since the organization has hired a security consultant to help them reduce their risk from future attacks, What the consultant would use to identify potential attackers is vulnerability analysis.

Vulnerability Analysis is a vulnerability assessment which entails an in-depth analysis of the building functions, systems, and site characteristics to identify: 1. Weaknesses in the system and

2. Determine mitigation or corrective actions that can be designed and implemented to eradicate vulnerability or reduce the vulnerabilities.

3 0
2 years ago
With 100 employees on staff, your company's insurance company recommended an online two-hour seminar each employee should watch
Helga [31]

Answer:

$7,000

Explanation:

The insurance company will actually save some money, but I doubt that your company does. We can assume that the seminar will be paid by the insurance company and it costs $15,000. After watching that seminar, accidents should decrease by 25% of an equivalent to = $88,000 x 25% = $22,000

Since the insurance company will save $22,000 with the seminar and the cost of the seminar is $15,000, its net gain = $22,000 - $15,000 = $7,000

6 0
2 years ago
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