What Are the Two Functions of Risk Mitigation? List and Describe

question 18

Essay

What are the two functions of risk mitigation? List and describe the three most common risk mitigation strategies. What are the benefits and risks of adopting each of these strategies for a small company? How would these benefits and risks be different for a large company?

Understand wire gauge sizes and their implications for electrical systems.

Define voltage and its equivalent terms in electrical contexts.

Explain the concept of an atomic number and how it differentiates elements.

Describe the characteristics and behavior of electrons within an atom.

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Definitions:

Capital Lease

A lease classified by the lessee as an asset and liability on the balance sheet because it effectively transfers substantially all risks and rewards of ownership to the lessee.

Executory Costs

These are costs associated with fulfilling the terms of a contract, excluding the direct material and direct labor costs, such as utilities, insurance, and property taxes involved in leasing.

Bargain Purchase Option

A lease provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Minimum Periodic Rental

In leasing agreements, it refers to the lowest amount that the lessee must pay over a specified period.