Answer: Planet Paul understands even though it cost a little more, the stakeholder considerations are important if one want their business to thrive.
Explanation:
The value of stakeholders to organizations cannot be underappreciated. Stakeholders are the individuals that are interested in ones company and gives ones business both financial and practical support.
Stakeholders include investors, employees, loyal customers etc. Based on the above question, Planet Paul understands even though it cost a little more, the stakeholder considerations are important if one want their business to succeed.
Answer: $12,000
Explanation:
The question makes no sense in one area. The loss probability for $0 cannot be 90% because the other two are collectively 20%. I shall therefore assume that the loss probability for $0 is 80% so that they add up to 100%.
Expected claim cost = ∑[loss probability * (Loss - Deductible)]
= 0.9 * 0 + [0.15 * (10,000 - 10,000)] + [0.05 * (250,000 - 10,000)]
= $12,000
Answer:
b. As inherent risk goes up, audit risk goes down.
Explanation:
Inherent risk is the risk which is present before applying any control, and audit risk is the that the auditor expresses inappropiate audit opinion when the financial statements are materialy misstated.
Thus, when the inherent risk is <em>high</em>, the auditor keeps the audit risk at <em>low </em>level to perform more subtantative procedures.
I don’t understand what the question is...
Four requirements for a valid contract are an offer, acceptance by the other party of the offer, a mutual agreement or meeting of the minds of the contracting parties and a valid consideration.
