Key Person insurance is most commonly utilized by very large companies. True False

Q: Financial controls are usually the first and most important controls in any business. True False

A: Financial controls encompass processes, policies, and systems that businesses put in place to manage…

Q: What are the performance measures of an insurance company?

A: Insurance is a contract in which an individual or business receives financial protection or…

Q: For purposes of Graham, Leach Bliley, financial institutions can include banks and insurance…

A: Gramm Leach Bliley Act states that all financial institutions should disclose all the information to…

Q: Companies invest in short term investments for safekeeping purposes. Right O Wrong

A: Short-term investments, otherwise called marketable securities or transitory ventures, are those…

Q: What is identity theft, and what responsibilities do businesses have to prevent it?

A: The question is based on the concept of identity theft , which is one of the leading problem in…

Q: Investors are interested in financial reporting because it provides information that is useful for…

A: Financial reporting means circulating and providing important financial information to all…

Q: If the chance that a risk will occur cannot be reasonably predicted or the possible financial loss…

A: An uninsurable risk is one that presents an unknown or unacceptable risk of loss for an insurance…

Q: Critically explain the key features of the Sarbanes-Oxley Act 2002 which aims at protectinginvestors…

A: The Sarbanes-Oxley Act of 2002 (SOX) was enacted in the United States in response to a series of…

Q: Companies of all sizes try to reduce business risks, create disaster recovery plans, and also…

A: Business risk Business risk is the risk of lowering the profits of a company. Any factor that…

Q: why a company would prefer to hedge over taking an insurance to minimize on risk

A: Company faces many kinds of risks during the operating of the company so company has to manage all…

Q: Business Risk , refers to the certainty of operating income caused by products, customers, machinery…

A: Risk is the possibility of suffering harm or loss. It is the chance that an event or action will…

Q: Competition can be depended on to keep insurance rates from being excessive, and good management…

A: Insurance rates are the prices charged by the insurance for a specific unit of risk exposure. In the…

Q: Who are the target customer of insurance companies?

A: Future events are uncertain and unavoidable, due to which risk arises. There are various methods to…

Q: What is the importance of insurance companies?

A: Insurance firms are financial middlemen that provide direct insurance or reinsurance services,…

Q: What is the relationship between risk management and insurance buying and why do some argue that…

A: The question is based on the concept of risk management and the use of insurance as a tool of risk…

Q: The creation of different payment tranches in a CMO allows investors to better tailor their…

A: CMO creates tranches with various bond classes.

Q: 3. Why is it important for insurance companies to have a large pool of people paying premiums?

A:

Q: 1. The internal control of separation of duties requires that employe

A: Internal control represents the activity of the company to detect the fraud and errors of the…

Q: Why it was said that credit when not controlled can bring ruin to its user? Give illustration.

A: Credit control is a corporate procedure that encourages the sale of goods or services to consumers…

Q: The major area of vulnerability for many entrepreneurs is accounts receivable. true or false

A: Entrepreneur is an individual who identifies and creates opportunities to start, develop and manage…

Q: For insurance companies risk management is critical to the success and viability of their business.…

A: An underwriter's risk of loss is known as underwriting risk. Underwriting risk in insurance can…

Q: Explain how hazards will help reduce the impact of loss in a company?

A: Loss is referred to as the decrease in net income in an financial terms, which is outside the normal…

Q: Financial Impact: Accurately accounting for warranty liabilities has a direct impact on XYZ…

A: The correct answer is B) Matching Principle.The Matching Principle is the accounting principle that…

Q: e importance of establishing an effective risk management policy at insurance companies to manage…

A: Introduction : In simple words, risk management refers to the phenomenon under which a company…

Q: What is the course of action (s) can be used to prevent fraudulent financial reporting in stock…

A: Fraudulent financial reporting  Reckless conduct, acts, or omissions, or Intentional…

Q: In insurance, all of the following lo examples of pure risk EXCEPT: a. injury to a businessperson's…

A: Pure risk is a risk in which there is just the prospect of loss or no loss—there is no chance of…

Q: Which of the following statements about XBRL is not true? XBRL eliminates the need to reenter…

A: 1) Which of the following statements about XBRL is not true?  XBRL is compatible with the majority…

Q: How insurance companies works?

A: Insurance companies are the type of organizations that were established in order to cover the…

Q: In terms of risk, labor union disputes, entry of a new competitor and embe management are all…

A: In the market there are two types of risks one are related to overall market that can not controlled…

Q: what is one example of a risk management strategy used by insurance companies to mitigate…

A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…

Q: d and misleading when used in isolation and how can companies manipulate their EPS in a favorable…

A: Corporation - A corporation is an organization that has been registered under corporation…

Q: Which of the following is NOT a client protection principle?   a. Methods that prevent client of…

A: Clients protection principles are very important in financial and loans.

Q: Hoe much money must you invest today in order to withdraw P1000 per month for 10 years if the…

A: Monthly withdrawal (C) = P1,000 Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12) Number of…

Q: How can patents, copyrights, and legal challenges be used to manage business risk?

A: A company can adopt a risk management strategy to mitigate business risk.

Q: If there is a small probability of a risk occurring, a business may choose to assume the risk rather…

A: Risk management is the process through which companies detect, analyse, and address risks that may…

Q: What are the Possible sanctions (Financial penalties) Against company who break the rules of ACCA or…

A: IFRS is a collection of accounting regulations for public firms' financial statements that aims to…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.