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Which of the following is the PRIMARY reason for implementing a risk management program?
A. Satisfies audit and regulatory requirements
B. Is a necessary part of management's due diligence
C. Assists in incrementing the return on investment (ROD
D. Allows the organization to eliminate risk
Answer: B
Explanation:
The key reason for performing risk management is that it is part of management's due diligence. The elimination of all risk is not possible. Satisfying audit and regulatory requirements is of secondary importance. A risk management program may or may not increase the return on investment (ROD.
NEW QUESTION: 2
In Ihrem Unternehmen buchen Rechnungsprüfer einen Skontobetrag nach der Buchungsnetzmethode. Wie lösen sie die Buchungsmethode aus?
Bitte wählen Sie die richtige Antwort.
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B. Durch Erstellen einer zusätzlichen Rechnungsposition für den Skontobetrag
C. Durch Verwendung eines geeigneten Dokumenttyps
D. Durch Ändern der Zahlungsbedingungen
Answer: D
NEW QUESTION: 3
The current price of Company X's common shares is $50. Its estimated P/E ratio is 25x. If the company borrows funds to finance a stock repurchase at its after-tax cost of capital of 6%, its EPS will:
A. decrease.
B. increase.
C. decrease first, then increase gradually in future years.
Answer: A
Explanation:
Since the earnings yield is 1/25 = 4%, which lower than its after-tax cost of financing, earnings dilution will result from the buyback.
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