Using insurance in a corporate risk management program

Assignment Help Financial Management

Reference no: EM131451070

1. All of the following are disadvantages of using insurance in a corporate risk management program EXCEPT:

Option 1: Premium payments are not tax deductible.

Option 2: Insurance coverage may be expensive.

Option 3: It may be time consuming to negotiate the coverages and terms.

Option 4: The presence of insurance may lead to reduced incentives to engage in loss control.

2. X Industries is a technology company that prides itself on the ability to react quickly to new product developments. It maintains a significant research and development budget. Regarding risk-reducing activities,X Industries is:

Option 1: More likely to retain risks thereby retaining use of more funds.

Option 2: More likely to retain risk because of their ability to react to changing developments.

Option 3: Less likely to retain risks to concentrate on what they do best.

Option 4: Less likely to retain risk to help ensure they have a steady supply of investment funds.

Reference no: EM131451070

Questions Cloud

Statement of financial performance : This one defines the company's financial state at POINT IN TIME. It lists the company's assets liabilities and equity at a particular point in time.

Accepted for a four-year production horizon : If the interest rate is 9%. which proposal should be accepted for a 4-year production horizon?

Is the employee entitled to reinstatement : A white college receptionist is fired when it is found that she told a black college applicant that the applications for admissions.

What makes for a good investment : What makes for a good investment? Buy a stock for $45 a share, hold it for 2 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share)

Using insurance in a corporate risk management program : All of the following are disadvantages of using insurance in a corporate risk management program EXCEPT:

What are some examples of sexual identity and gender roles : What is the difference between the two and what are some examples of sexual identity and gender roles

Riskless asset and risky portfolio : Riskless asset and risky portfolio. Now suppose you require a risk premium of 15%. What is the price you will be willing today?

Review the code of ethics of an organization of your choice : Review the code of ethics of an organization of your choice. Then, state what provision you would add, modify, or remove. Present your rationale.

Review the case study of eeoc v consolidated service system : Defendant is a small janitorial firm in Chicago owned by Mr. Hwang, a Korean immigrant, and staffed mostly by Koreans.

User Account

All Pages