Risk Management Is Both a __________ and _______________ Responsibility

question 12

Short Answer

Risk management is both a __________ and _______________ responsibility.

Identify the nuances of material alteration to an offer under the CISG.

Recognize who is considered a merchant under Article 2 of the UCC.

Understand the definition and importance of good faith in commercial transactions.

Distinguish between the enforceability of contracts with unconscionable clauses and other contract formation principles under the UCC.

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Definitions:

Initial Value Method

An accounting method which records assets and investments at their original purchase cost.

Lower-of-Cost-or-Market-Value

An accounting principle requiring that inventory be recorded at the lower of either its historical cost or its current market value.

Book Value

The value of an asset as reported on a company's balance sheet, calculated as the cost of the asset minus any accumulated depreciation.

Impairment Model

Impairment Model is an accounting method that requires assets to be reviewed for impairment, whereby their carrying value is adjusted to reflect their recoverable amount if this is less than their current book value.