From previous experience the principal has determined the following: LOW EFFORT HIGH EFFORT
Sales Probability Sales Probability
$ 450 0.25 $ 450 0.50
$ 200 0.25 $ 200 0.25
$ 100 0.50 $ 100 0.25
(i) Design a contract that eliminates the need for monitoring and eliminates the moral
hazard problem.
(ii) Explain the ‘moral hazard problem’ in this context.
(iii) Using the values from your contract, explain how the contract has solved the moral
hazard problem.

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

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