The U.S. government is concerned that terrorists might try to crash a vehicle loaded with explosives into a U.S. embassy in a foreign country. Inside the gate to the embassy, they installed steel and cement posts in the road
These posts can be raised up from the ground to form a barrier against suicide bombers. The posts can be lowered back into the ground to allow safe vehicles to pass. This physical barrier system illustrates which risk management technique?
A) risk avoidance
B) insurance transfer
C) loss prevention
D) noninsurance transfer
Answer: C
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The process of recording an item in the financial statements is called measurement
a. True b. False Indicate whether the statement is true or false
Briefly describe the different types of pricing objectives
What will be an ideal response?
If the required rate of return on a bond (rd) is greater than its coupon interest rate and will remain above that rate, then the market value of the bond will always be below its par value until the bond matures, at which time its market value will equal its par value. (Accrued interest between interest payment dates should not be considered when answering this question.)
Answer the following statement true (T) or false (F)
If product X cost $50 and had a 4 percent failure rate, the entry to record the estimated product warranty expense in a month when 1,000 units are sold would be
a. Product Warranty Expense 2,000 Estimated Product Warranty Liability 2,000 b. Product Warranty Expense 200 Estimated Product Warranty Liability 200 c. Product Warranty Expense 20 Cash 20 d. Estimated Product Warranty Liability 50 Cash 50