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3 years ago

In risk management, removing the source of a risk is called:

Business

1 answer:

ZanzabumX [31]3 years ago

3 0

Answer:

Risk avoidance

Explanation:

Risk avoidance is a threat management strategy. The strategy involves making adjustments to the original project plans so that the risk triggering events are eliminated. Although the strategy may not work in all projects, it is the most effective way of preventing risks.

Risk avoidance does not mean abandoning projects that have risks. It entails a deliberate and well-thought approach to reduce vulnerabilities that pose a threat to the project.

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A company has two divisions and evaluates management using return on investment. Division 1 currently makes a part that it sells

Anton [14]

Answer:

c. Division 1 should continue to do business with Division 2 because Division 1's variable cost per part is only $18.

Explanation:

Since the variable cost per part is only $18 and Division 1 sells to Division 2 at $25, it is in the company's overall interest that business should continue between the two divisions.

The cost of getting the part from outside is $26. This will incur more cost to the company and create excess capacity for Division 1.

Fixed costs are not relevant in making a decision of this nature. The costs would be incurred irrespective of the decision made. They are therefore irrelevant. The relevant cost is the variable cost of $18 per unit. It should be the focus of the decision, including the possibility of excess capacity for Division 1.

7 0

3 years ago

There are four major categories with examples that provide a useful way for examining logistics and supply chain performance: Th

mr Goodwill [35]

Answer:

Quality

Explanation:

Logistics and supply chain management performance is best evaluated by examining time required to carry out task, the quality of task at hand, the cost to be expended and the supporting metric.

4 0

3 years ago

Read 2 more answers

On January 1, Year 2, the Arlington Company had 100,000 shares of common stock issued and outstanding. On July 1, Year 2, the co

Dennis_Churaev [7]

Answer:

The correct answer is 137,500 Shares.

Explanation:

According to the scenario, the computation of the given data are as follows:

Time period Jan.1 - Jul.1 = 6 months

So, first we calculate the weighted average before dividend.

Weighted average before dividend shares outstanding = (100,000 × 6 ÷ 12) + (120,000 × 6 ÷ 12)

= 50,000 + 60,000 = 110,000

Now we can calculate the weighted-average number of common shares outstanding during Year 2 by using following formula:

Weighted-average number of common shares outstanding = Weighted average before dividend shares outstanding + Dividend on outstanding Shares

By putting the value we get,

= 110,000 + 25% × 110,000

= 110,000 + 27,500

= 137,500 Shares

6 0

3 years ago

Setrakian Industries needs to raise $87.9 million to fund a new project. The company will sell bonds that have a coupon rate of

Goryan [66]

Answer:

47,884.79 units of bonds

Explanation:

The units to be sold to arise $87.9 million will be equal to the

$87.9 million / divided by the bond price

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity. These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

Semi-annual coupon rate = 5.92/2 = 2.96%

Interest payment =2.96%× 2,000= 59.2

Semi annual yield = 6.67%/2 = 3.335

PV of interest payment

= A ×(1- (1+r)^(-n))/r

= 59.2× (1-(1.03335)^(-2×20))/0.03335)

= 1,297.22

Step 2

PV of redemption value

PV = FV× (1+r)^(-n)

= 2,000 × (1+0.03335)^(-2× 20)

= 538.43

Step 3

Price of bond =

= 1297.22 + 538.43

= $1835.65

Step 4

Units to be used

= $87.9 million/ $1,835.65

= 47,884.79 units

4 0

3 years ago

Read 2 more answers

Which of the following is one of the basic functions of government

SVETLANKA909090 [29]

More than likely option D.

4 0

2 years ago