“Prevention is much cheaper than external failure.” Do you agree with this statement? Why or why not?

Q: In engineering economics, if PW <0 this means to reject the project, because it is not economically…

A: The present worth of a project is calculated by the discounting the future cash inflows and outflows…

Q: What makes the cost-benefit analysis more difficult for information systems than most other…

A: Cost Benefit Analysis: Cost benefit analysis is conducted to determine whether the proposed system…

Q: Are you agree with the phrase (sentence): "In the following case, A risk aversion person will not…

A: A person is said to be a risk averse person, when he prefers lower returns with known risk in…

Q: Is there any reason to believe that the project with the lower payback period is the better project?

A: Payback Period: It is the period in which the cost of the project is recovered. Hence, the shortest…

Q: ered productively inefficient?

A: A choice is said to be productively inefficient when it is possible to produce higher units of…

Q: hat way can the use of ROI as a performance measure for investment centers lead to bad decisions?…

A: ROI is the return on investment in which the there is consideration for the current year profit only…

Q: Are you agree with the phrase (sentence): "In the following case, person who prefer project B to…

A: ENPV of Project A is 100 ENPV of project B is 120 Standard deviation of Project A is 15  Standard…

Q: Explain the principal-agency problem. Can you propose one potential solution for this problem to…

A: The Principal-agency problem is one of the most common problems in modern businesses. It refers to…

Q: Are you agree with the phrase(sentence): "In the following case. a risk aversion person will not…

A: In the above question we are given ENPV which means expected net present value from a project and…

Q: Possible Risks of Maintaining Fewer Suppliers?

A: Suppliers are the persons from which business purchase goods and supplies to be sold. Business…

Q: why do managers use IRR for strategic decison more than NPV?

A: Capital Budgeting tools and techniques help managers appraise investment opportunities.  It is…

Q: We have seen that market timing has tremendous potential value. Would it therefore be wise to shift…

A: Securities selection is the process where financial securities are chosen and included in the…

Q: Which of the following is correct about the security market line (SML)? Investment projects that…

A: Security market line is the graphical representation of the values of stock against the risk…

Q: Why do most of the engineers prefer Rate of Return Analysis to the PW method?

A: Answer: They would be calculating the present worth of cash flows using a net present value…

Q: A project with a negative NPV should be rejected. O True O False

A: Net present value  = present value of future cash inflows discounted at desired rate of return -…

Q: Should companies completely avoid high-risk projects? Explain.

A: A huge-risk venture is one that has either a tall rate possibility of capital misfortune or…

Q: Are you agree with the phrase (sentence): "In the following case, person who prefer project A to…

A: Two projects have been given. We have information about their risk reward profile. We have to find…

Q: “Managers will always choose the alternative that maximizes operating income or minimizes costs in…

A: Operating income: Income that is derived from business revenues after deducting operating expenses…

Q: The board of directors of AMSB are confused between IRR and NPV. Briefly discuss the Internal Rate…

A: The internal rate of return method is a capital budgeting method which helps in finding out the rate…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project.  A project giving a higher…

Q: How weak reserch culture have an affect on Low potential investment? Explain in detail.

A: The low potential investment is also known as the low-risk investment. It refers to the investment…

Q: Imposing the same emissions standards on all polluters is cost-effective policy. True or False?

A: Imposing the same emission standard will violate the equi-marginal  principle .

Q: تر أحد الخیارات None of the options Inefficiency of management Increase cost Reduce the risk

A: Management and shareholders exist in agency situations in the corporation.

Q: Do you think it is realistic for a smaller company to reach and enjoy this beneficial negative CCC?

A: CCC CCC stands for cash conversion cycle. It refers to the time taken in days by a business to…

Q: Discuss the following statement: “A project may not be very riskyin spite of its high sensitivity to…

A: Sensitivity analysis is defined as the percentage change in one variable with respect to percentage…

Q: The project with the highest IRR may not be the preferred alternative. To illustrate the flaws of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: What is opportunity cost? Select one: O a. It is the cost of the worst opportunity when we choose…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Should companies completely avoid high-risk projects?

A: When we talk about risks involved in a project, then that risk can be of many types. Risks related…

Q: It is possible to eliminate all risk by diversification? Explain your answer

A: Diversification is a technique used to reduce risk by investing in variety of assets. It is a risk…

Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a…

A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by…

Q: How are the generation and evaluation of creative investment proposals far too important task?

A: Investment appraisal or evaluation is the two-fold task of balancing risk pertain to a definite…

Q: There are times when accepting a negative or zero NPV project makes sense. Explain what a zero NPV…

A: Net present value means the difference between present value of cash inflow and present value of…

Q: A project is not economically feasible if MARR is at least bigger than or equal to IRR. Select one:…

A: The Above Statement is 'True'

Q: Discuss how diversification can enhance risk reduction?

A: Introduction : Diversification can be understood as the act of distributing resources in such a…

Q: Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,”…

A: The company using the process to reduces the cost that increases the profit is known as cost…

Q: If value erosion is expected, would we still continue to produce integrated report? Why?

A: Integrated reporting involves a process in which reporting about the entity's strategy, performance…

Q: Explain how IT outsourcing can lead to loss of strategic advantage.

A:

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.