Operational risk, or risk that arises from the actual operation/course of running the business.
Answer:
a. When the equipment is sold.
Explanation:
As we know that
When someone sells or purchase a product, the services are attached to the product which is passed from the buyer to the seller that can be in terms of warranty i.e after-sales services, etc
So according to the given situation, the estimation of the warranty cost is $25 per time sold so the warranty cost should be recognized when the equipment is sold as it is attached to the product
Answer:
c. Face validity
Explanation:
Since in the question it is mentioned that the company complaints with respect to the cost, also dont want to add other tests that leads to an ncrease in budget
Also, it the other assessment instrument would be added so this scenario represents the face validity that deals in the study or not for particular measures
Therefore the correct option is c. Face validity