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Moral hazard occurs when individuals:
Total Debts
The sum of all liabilities, or the total amount of money that a person or entity owes to creditors.
Inventory Turnover
A measure of how quickly a company sells and replaces its inventory over a certain period, indicating the efficiency of inventory management.
Net Income
Net income represents the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the actual profit made during a specified period.
Total Assets
The sum of all resources owned by a company, valued in monetary terms, which includes tangible and intangible items.
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