Maurice Tutor

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Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 10 Jun 2017 My Price 11.00

independence of risks matter

Chapter 11 Questions and Problems: 1 and 14 Chapter 12 Questions and Problems: 4 and 11 1. Why does the assumption of independence of risks matter in the examples of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where they might be negatively correlated? 14. Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms? Give some reasons why and some reasons why not? 4. In some ways monitoring is easier in a partnership than a corporation, where shareholders monitor directors. In what ways is monitoring easier? In what ways is it not? 11. A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30 percent of the firm’s stock and your friend holds 70 percent. Why should you ever put yourself into a position where your friend’s decision will carry the day, whether you agree with her or not? What does this tell you about problems that allegedly stem from separation of ownership and control?

 

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Maurice Tutor
(5)
Status NEW Posted 10 Jun 2017 10:06 PM My Price 11.00

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