Jonathon Is in Charge of Risk Management for Learnit Corp

question 112

Multiple Choice

Jonathon is in charge of risk management for Learnit Corp., a large chain of preschools in the midwest. He has decided to build enterprise risk management into the organization. The first step Jonathon should take is to:

• A) decide on the spyware software the organization should buy.
• B) send a letter to all of the staff informing them that using e-mail for personal purposes will not be allowed.
• C) remove the playgrounds from all of the locations.
• D) decide which risks the organization should manage.

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Definitions:

Asset

Resources owned or controlled by a business, projected to bring future economic benefits.

Measurement Alternative

An accounting option that allows entities to measure certain investments at cost, minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

Receivables

Debts owed to a company by customers or other parties arising from the sale of goods or services or loans given.

Investment Securities

Financial instruments purchased with the intent of holding them for investment. These can include stocks, bonds, and other securities.