Companies Adopt Risk Management Procedures to Minimize the Chance of Business

question 17

True/False

Companies adopt risk management procedures to minimize the chance of business failure due to unplanned events such as security breaches, terrorist attacks, and natural disasters.

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Definitions:

Straight Line Amortization

A method of gradually reducing the cost value of an intangible asset over a fixed period of time through regular fixed payments.

Effective Tax Rate

The average rate at which an individual or a corporation is taxed, calculated by dividing the total tax paid by the taxable income.

Unrealized Profit/(Loss)

A profit or loss that results from an investment that has not yet been sold or finalized.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption or wear and tear of the asset.