Answer:The major advantage of avoidance technique in risk management is that it is cheaper than every other method of risk management.
It is possible to avoid all potential loss by company
Explanation:The technique of avoidance save the company deploying it in risk management the stress of paying fines ,loss of funds , reputational damages that may arise among other things should a potential risk crystallized into full blown loss.it involves setting up method or safeguard that protects the institution from a certain level of risk ,it might involves abstaining from certain trasaction as a whole or setting risk limits for certain amount of trasaction,above this limits,it's no deal.
It is possible to avoid potential loss to a barest minimum by adopting the best risk management techniques as applicable,this include hedging in case of currency exchange ,taking insurance against unforseen circumstances, adopting industry best practices,avoiding illegal or overly risky ventures,having a proper risk management team in place.etc
Answer:
None of the other answers is correct.
Explanation:
Williams A. Phillips was a notable economist born in New Zealand. Phillips wrote a famous article titled "The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957" published in 1958 by Economica. In the article, he used data for the United Kingdom (U.K) to illustrate on a graph, a negative or inverse relationship between the rate of change of employee wages in the U.K and the unemployment rate in the United Kingdom (U.K).
Consequently, using the Phillips curve it is practically impossible for policymakers to reduce both the inflation rate and the unemployment rate because as the inflation rate decreases; the unemployment rate increases and vice-versa.
However, according to the Phillips curve, policymakers can reduce inflation and increase unemployment if aggregate demand is contracted.
Answer:
Journal Entry
January 1
Dr. Cash $940,000
Dr. Discount on Account Receivable $60,000
Cr. Bond Payable Account $1,000,000
Explanation:
The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.
Discount on the Bond = Face value - Sale value = $100,000 - $940,000 = $60,000
The discount amount will be recorded in Discount on Bond Payable Account and will be amortized over the 10 years until the maturity of the bond.
Answer:
. Obtaining third-party written quality and quantity reports prior to payment for the raw materials
Explanation:
Purchases of raw materials can be regarded as purchases of all commodities that is required as inputs in the process of production as well as related to the supply of factors of production. It should be noted that Effective controls relevant to purchasing of raw materials should usually include; ✓Determining the need for the raw materials prior to preparing the purchase order.
✓Systematic reporting of product changes that will affect raw materials. Obtaining financial approval prior to making a commitment.
