Tom SpencerMAINSTREAM economics would have you believe that the purpose of business is to maximise profits. If a business loses money it will soon go bust, this much is clear. Profit is necessary for any ongoing business operation, however the fact that a business makes a profit does not explain the purpose or raison d’être of […]
WARREN Buffett is an American investor born in 1930 in Omaha, Nebraska. Buffett is often referred to as the “Oracle of Omaha” and is the world’s most successful stock market investor. Buffett is the largest shareholder and CEO of Berkshire Hathaway. He has an estimated net worth of around $US45 billion. In 2010, Forbes ranked […]
In the previous post on Moral Hazard, we learnt that Moral Hazard refers to any situation where a person is not fully responsible for the consequences of their actions. As a result, they may take greater risks than they would have otherwise. Here are 6 examples of situations where Moral Hazards arise in practice. 1. Insurance […]