How do speculative risk and pure risk differ? Which is of greater concern to a corporate executive? Why?
What will be an ideal response?
Pure risk is the possibility of loss. Speculative risk is the deviation or variability away from the expected outcome. Thus, a corporate executive is more concerned with speculative risk as deviations in any direction from the expected requires adjustments to planning, operations, finance, and all other functional areas of the firm.
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Regulatory statutes are designed primarily to:
A. protect the public from dishonest persons. B. prohibit the performance of certain work and the transaction of certain business on Sunday. C. regulate betting and gambling. D. prohibit charging more than a stated amount of interest for the use of money.
Which of the following is a measurement attribute used in U.S. GAAP to measure inventories whose usefulness (typically, in terms of salability) to the firm has declined below the cost of the inventories?
a. Current Replacement Cost b. Net Realizable Value c. Fair Value d. Present Value of Future Net Cash Flows e. Acquisition cost
Choose the correct word or words in parentheses. The Atlantic Ocean is slightly less (then, than) 6.5 times the size of the United States
Judicial authority to review agency actions may be derived from each of the following
except: a. the Constitution b. statute c. common law d. all of the above e. none of the above