ECO550 Strayer Week 9 Risk Uncertainty & Managing Incentives Cases Analysis

CASE STUDY 2: Cases Analysis of Risk, Uncertainty and Managing Incentives
Select a company of your choice, any company but Southwest Airlines, and write a six to eight (6-8) page paper in which you:
Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty.
Offer advice for improving risk management.
For the company you selected examine an adverse selection problem and recommend how it should minimize its negative impact on transactions.
For the company you selected determine the ways in which it is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
For the company you selected identify a principal-agent problem and evaluate the tools it uses to align incentives and improve profitability.
For the company you selected examine the organizational structure and suggests ways it can be changed to improve the overall profitability.
Use at least five (5) quality academic resources in this assignment. Note: One of your references regarding your research should have been published within the last 6 months. Note: Wikipedia and Investopedia do not qualify as an academic resource.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Grading Rubric:
Name: ECO550 Week 9 Assignment 3: Long-Term Investment Decisions
Description: ECO550 Week 9 Assignment 3: Long-Term Investment Decisions
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Unacceptable Below 70% F Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A
1. Describe the Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty.
Points Range:0 (0%) – 21.68 (6.99%)
Did not submit or did not address the subject
Points Range:21.7 (7%) – 24.78 (7.99%)
Partially describes the Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty. Offer advice for improving risk management.
Points Range:24.8 (8%) – 27.88 (8.99%)
Satisfactorily describes the Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty. Offer advice for improving risk management.
Points Range:27.9 (9%) – 31 (10%)
Thoroughly describes the Evaluate a company’s recent (with in the last year) actions dealing with risk and uncertainty. Offer advice for improving risk management.
2 Offer advice for improving risk management
Points Range:0 (0%) – 32.52 (10.49%)
Did not submit or did not address the subject
Points Range:32.55 (10.5%) – 37.17 (11.99%)
Partially offered advice for improving risk management.
Points Range:37.2 (12%) – 41.82 (13.49%)
Satisfactorily offered advice for improving risk management
Points Range:41.85 (13.5%) – 46.5 (15%)
Thoroughly offered advice for improving risk management
3. Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
Points Range:0 (0%) – 32.52 (10.49%)
Did not submit or did not address the subject
Points Range:32.55 (10.5%) – 37.17 (11.99%)
Partially examines an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions
Points Range:37.2 (12%) – 41.82 (13.49%)
Satisfactorily examines an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
Points Range:41.85 (13.5%) – 46.5 (15%)
Thoroughly examines an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
4. Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
Points Range:0 (0%) – 32.52 (10.49%)
Did not submit or did not address the subject
Points Range:32.55 (10.5%) – 37.17 (11.99%)
Partially determines the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
Points Range:37.2 (12%) – 41.82 (13.49%)
Satisfactorily determines the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
Points Range:41.85 (13.5%) – 46.5 (15%)
Thoroughly determines the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
5. Identify a principal-agent problem in your company and evaluate the tools it uses to align incentive