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What Is the Difference Between Mitigating a Risk and a Contingency

question 5

Essay

What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.


Definitions:

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.

Extraordinary Repairs

Major repairs or expenditures that significantly prolong the useful life of an asset, beyond normal maintenance.

Annual Depreciation

The amount of an asset's cost allocated as an expense each year over its useful life, reflecting wear and tear or obsolescence.

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