Assignment: Moral Hazard
In economic theory, a moral hazard is a situation where a party will have a tendency to take risks because the costs that could result will not be felt by the party taking the risk. In other words, it is a tendency to be more willing to take a risk, knowing that the potential costs or burdens of taking such risk will be borne, in whole or in part, by others.
For this assignment, you will explore a corporate scandal that has occurred in the past 5 years. You will examine moral hazard and the relationship with excessive risk taking by management. Action Items¬:
Write 3¬page papers that includes the following sections. Format the paper according to the cademic Paper A Guidelines. 1. Identify a corporate scandal that has occurred in the last 5 a. years Discusses the corporate scandal chosen and the moral hazard involved.
b. Discusses the excessive risk taking by management that lead to the scandal.
c. d. Provides possible solutions to mitigate the moral hazard. 1. Check your paper with Grammarly.com. Modify your paper as needed. 2. Submit your paper to turnitin.com. Your professor will provide the necessary access information so you can upload your paper to the class assignment site.
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