Finance

Frazier Electric keeps a paper copy of business records at the company

Frazier Electric keeps a paper copy of business records at the company’s headquarters. The company also has two back-up copies of business records stored in electronic files. The electronic files are kept in the event the paper records are damaged or destroyed. The back-up files illustrate which of the following risk control techniques? A) loss […]

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Date: September 19th, 2020

Five years ago, Shannon decided to start investing monthly in the comm

Five years ago, Shannon decided to start investing monthly in the common stock of ABC Telecom Company. Her financial well-being will be harmed if the price of ABC Telecom stock drops significantly. The risk of investment loss can be reduced if she invests in other companies and other types of financial assets. The risk Shannon […]

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Date: September 19th, 2020

Rather than storing all of its finished goods in a single location, Da

Rather than storing all of its finished goods in a single location, Davis Company divides the finished goods between two warehouses. This simple risk control technique which is designed to limit losses should a warehouse fire occur is called A) duplication. B) risk transfer. C) separation. D) loss prevention.     ANSWER Answer: C

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Date: September 19th, 2020

A student who has skipped many classes and not studied the course mate

A student who has skipped many classes and not studied the course material was surprised to learn there was a test when he showed-up for class. The student’s mental uncertainty about whether or not he will pass the test is called A) objective risk. B) objective probability. C) subjective probability. D) subjective risk.     […]

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Date: September 19th, 2020