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:

Equity Method

An accounting technique used to record investments in associate companies, where the investment's value is adjusted to reflect the investor's share of the associates' profits or losses.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries, presenting them as a single entity.

Land Account

An account on the balance sheet that represents the cost of land owned by a company. Unlike other fixed assets, the land is not depreciated.

Investment

The allocation of resources (such as capital or time) with the expectation of receiving future returns.