Answer:
(D) Earnings numbers are accurate
Explanation:
Under the Sarbanes–Oxley Act of 2002, the SEC requires CFOs to certify that the firm’s financial statements should represent true and accurate amounts. It does contain any false commitment which affects the overall shareholder decisions.
Moreover, the top manager of the company checks the accuracy of the financial reports which contains important and valuable information about the company.
So, all options are incorrect except D.
Answer:
The correct answer is letter "D": foster an innovative culture and climate that permits experimentation, risk-taking, and failure.
Explanation:
In Ron's case, as the research conducted by his team seems to be correct, even if he does not feel sure about the new shampoo produced he should <em>promote an innovative culture among his subordinates</em>. While innovating, some companies may manufacture goods that do not provide any benefits to the company but it is most important to analyze why the project failed and what could have been done differently to provoke different results.
<em>Entities carry certain risks at the moment of starting operations and must not be discouraged by failure.</em>
Answer:
pool the risks of healthcare costs.
Explanation:
In Insurance, risk tolerance refers to the willingness of an individual or organization to take a risk in business transactions in order to get a potentially positive reward.
Simply stated, risk tolerance in insurance is the willingness of an insured individual to increase his or her Self-Insured Retentions (SIRs) or deductibles by the insurer. For instance, the high risk associated with investments such as stocks, high-yield bonds, is often perceived by investors to be worth the higher reward such investment brings.
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
Hence, the main function of insurance is to pool the risks of healthcare costs.
Answer:
the annual financial advantage (disadvantage) for the company of eliminating this department is $18,500
Explanation:
the computation of the annual financial advantage (disadvantage) for the company of eliminating this department is as follows:
Annual financial Advantage (disadvantage) = $37000 - ($74000 - $18500)
= $37000 - $55,500
= $18,500
Hence, the annual financial advantage (disadvantage) for the company of eliminating this department is $18,500
Answer:
Benjamin Fisher
Insider Trading:
1. The purpose of the meeting is for:
Intensive problem solving.
2. The people that should be invited to attend the meeting should be:
5 or fewer
Explanation:
As the CEO, it is Benjamin's responsibility to call for this meeting between himself and his trusted executives. Therefore, the number of those attending should be limited to 5 or fewer. The meeting needs to be an intensive one that must iron out a solution for developing a communication strategy for handling the present situation.
The insider trading accusation can seriously damage the firm's reputation and needs to be handled with despatch.