A Risk Manager Should Address Which of the Following Considerations

question 48

Multiple Choice

A risk manager should address which of the following considerations?
I.The firm needs to understand the major risks and consequences that the company faces.
II.The firm needs to determine if it is being paid for any particular risk.
III.The firm should simply view risks as external factors beyond the firm's control.
IV.The firm should know how to control a particular risk.

• A)I only
• B)I and II only
• C)I, II, and IV only
• D)III only

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Definitions:

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to check for the accuracy of the entries.

Accounts Receivable

Money owed to a company by its customers for products or services delivered on credit.

Credit Sales

Transactions where goods or services are provided with the agreement that payment will be made at a later date.

Recording Process

The systematic method of capturing all financial transactions of a company to ensure accurate financial reporting and analysis.