To assure the operational readiness of the tools, implements, equipment and
maximum return on investments.
A rental business must instruct its customers on:
- rules and regulations relating to the rented item or property
- responsibilities of the renter
- rights of the renter
A rental business needs to ensure that its renters know what is expected of them so that they act accordingly which is why:
- They need to know all rules and regulations relating to the item being rented including applicable laws
- They need to know their responsibilities as renters so that they can live up to them
- They need to know what rights they have
Rental businesses are the owners of property and so the onus is on them to ensure that renters act in such a way that the owners do not get into trouble or incur avoidable losses.
For that reason, we can conclude that rental businesses need to keep their customers abreast of various laws, rules and regulations that relate to rented item.
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Answer:
The specialty or expertise of the financial institution
Their Management and Board composition
Their capital adequacy
Their performance
Explanation:
1) Specialty/Expertise:
Different financial institutions have their different area of strength/competence. Some are good in retail, some are good investment banking, some are good in deal making and consolidation etc. Depending on the purpose for which they are to be deployed, the area of their competence would matter most. E.g contracting a bank that is predominantly strong in retail banking to execute an M&A deal would not be ideal.
2) Management & Board composition:
The strength of a financial institution is as good as the quality of the people managing it. The expertise and know how of the management in key areas of business development, strategy, operations etc. will be vital for the growth of the financial institution
3) Capital adequacy
The adequacy of the capital structure of a financial institution is critical as it determines how much business and risk it can take on. By capital adequacy, we simply mean the ratio of its equity to debt. The less leverage its balance sheet is, the more business it can take on. This is critical if the volume of transaction one is about to transact with the financial institution is large.
4) Performance
The performance of a financial institution will show how efficient it is at generating returns and creating value to its shareholders and well as stakeholders. Every investor has an expectation of returns, a financial institution should be able to meet or exceed the market average for such performance yardstick as margin, ROI (return on investment), Return on Asset (ROA) etc
A restaurant operates at full capacity during dinner times and experiences unused capacities during breakfast and lunch times. It should plan for capacity based on the demand levels at dinner times.
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Explanation:</u></h3>
Demand refers to the number of products that is being required by the consumers to buy. Supply refers to the number of products that is made available to the consumers. The prices of the products and the demand of any product or services determines the supply of the product. These three terms are inter related with each other since one affects the other.
In the given example, it is given that the operation of a restaurant utilizes its full capacity during the time of dinner. They are left unused during the time of lunch and breakfast. Thus the restaurant must plan for the capacity depending on the levels of demand that exists at the dinner time.
Answer:C. Damage to completed cars held on a storage lot
Explanation:
Operational risk are the hazards and the uncertainties that are faced by companies in the day to day activities. It may be caused as a result of system failure or manufacturing components.
An example of operational risk for a company that manufactures automobiles would be damage to completed cars held on a storage lot.