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SVETLANKA909090 [29]
3 years ago
10

The use of risk quadrants to identify and categorize risk can provide a framework for holistic risk identification. Which quadra

nt includes risks such as loss of production due to a key supplier not delivering raw materials or a mechanical breakdown of equipment?
Business
2 answers:
aivan3 [116]3 years ago
4 0

Answer:

The options are given below:

A. Hazard risk

B. Strategic risk

C. Operational risk

D. Financial risk

The correct option is C. Operational risk

Explanation:

Operational risk refers to the possibility of incurring losses due to any or a combination of the following:

  • loss of production
  • breakdown of equipment
  • errors by employees
  • systems failures
  • criminal activity
  • catastrophic events
  • internal and external fraud
  • failure to adhere to internal policies
  • political upheavals
  • computer hacking
  • any event that disrupts business processes.

The list is endless, as there are countless internal and external forces that constitute risk(s) to a business.

Margaret [11]3 years ago
3 0

Answer:Operational risk

Explanation:

Operational risk is the possibility of loss which can result from inadequate or failed procedures, systems or policies. Employee errors, Systems failures,Fraud or other criminal operational risk is any event that is capable of disrupting business processes.

Therefore,loss of production due to a key supplier not delivering raw materials or a mechanical breakdown of equipment will affect the business process ,so we classify it as operational risk .

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4. Which of the following is a liability?
zlopas [31]

Answer:

Maybe C.

Explanation:

5 0
2 years ago
Read 2 more answers
The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Jo
trasher [3.6K]

Answer:

prepaid expense 15,500 debit

prepaid insurance 15,500 credit

Explanation:

<em>The amount of unexpired insurance will be the ending balance of the account</em>

4,500 debit

+ 16,600 premium paid

+/- adjustment

5,600 ending

4,500 + 16,600 - 5,600 = 15,500

8 0
3 years ago
Read 2 more answers
The Tax Cuts and Jobs Act passed in December of 2017 dramatically increased the amount of money that is exempted or excluded whe
Serga [27]

Answer:

Option D. Portability Rule

Explanation:

The Portability rule says that if the estate tax exemption was not fully utilized at the time of the other spouse's death then the rule allows the surviving spouse to use the remainder unused estate tax exemption if left unused. So basically this rule gives the person maximum chance to obtain the benefit of utilization of estate tax exemptions.

8 0
3 years ago
The interest paid on a municipal bond, otherwise known as a muni, is generally exempt from federal income taxes. therefore, the
Ratling [72]
That statement is true
A corporate Bond is way more senstive to the condition of the market which will affect the volatility of its value. Since government could technically produce their money from the federal reserve, the municipal bond is technically will always be paid (by risking inflation)
4 0
3 years ago
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2013, for $105,000 when the book value of Gates was $600,000
nata0808 [166]

Answer:

Goodwill    35,000 debit

   Investment in Gates      25,000 credit

  Retained Earnings          10,000 credit

--to adjust for change of method--

Explanation:

600,000 x 15% = 90,000

purchased at     105,000

<em>goodwill of 15,000</em>

<em />

+ 150,000 x 15% of net income = 22,500

- 50,000 x 15% dividends          =   (7,500)

<em>investment at the end of 2013:</em>

90,000 + 22,500 - 7,500 = 105,000

Then we purchase 25%

105,000 represent 15%

thus 25% would be: 105,000 / 0.15 x 0.25 = 175,000

purchased at 200,000

goodwill of 25,000 to be recognized.

So, equity method will be:

105,000 + 175,000 = 280,000 for the proportional equity

and 15,000 + 25,000 = 35,000 goodwill

Total of 315,000

While fair value will not recognize goodwill. and also, the investment is not modified when dividends and the gain for the year are delcared.

It measure at cost unless the market value of the stock decrease so we got:

105,000 1st purchase + 200,000 2nd purchase = 305,000

To adjust we are going to decrease investment by 25,000 and increase goodwill by 35,000 the other will go into retained earnings to balance out.

8 0
3 years ago
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