Explore BrainMass
Share

Weighing risk against return, is insurance beneficial, more.

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I got help for these questions and got into trouble for plagiarism, Could you please help me answer them without plagiarism

# 3
How would you weigh risk against return? Is there a point when return makes risk invalid? Explain your answer well.

# 4
When is insurance beneficial? Is insurance ever not beneficial? Explain your answer very well.

# 5
Where would you begin an evaluation of an internal control system? Please explain why?

# 6
What are some major components of an internal control system? Are these components always necessary? Explain your answer.

# 7
Explain the details of a fraud scheme that internal controls, due to inherent limitations, cannot impede

# 8
Describe some considerations for observing physical inventory. Explain a fraud scheme that could be used for inventory.

# 9
Explain how a company's growth can outpace current controls and provide an example

# 10
Explain some major risks inherent in the payroll cycle. How can these risks be mitigated?

# 11
Explain how controls and security are related for information assets

# 12
Explain the links between business continuity, system availability, and disaster recovery?

© BrainMass Inc. brainmass.com December 20, 2018, 4:14 am ad1c9bdddf
https://brainmass.com/business/management-information-systems/weighing-risk-against-return-is-insurance-beneficial-more-279922

Solution Preview

This is an original work and has not been previously published or shared with any other source. This work is to be treated as a guideline to assist you with this assignment. At no time is it intended to be a final submission work and I discourage you from using it as such. Points made and topics discussed in this work should be researched further and validated by the student prior to utilizing it in their own work which will be complied for final submission to their schools.

_____________________________________________________________________________________________

How would you weigh risk against return? Is there a point when return makes risk invalid? Explain your answer well.

A. Weighing risk against return is a matter of the financial goal versus the time available to reach that goal versus the individuals tolerance to the risk required to reach the goal. It is a variable and highly personal issue. If considering risk on a corporate level, the risk tolerance is based on the long and short term financial goals of the company and its ability to 'bounce back' from any losses incurred.
B. Risk is never considered invalid because it is a constant state of investment. There is no such thing as a sure thing in investing therefore risk is always present. The only time someone could look at their investment and determine that the risk was not a factor is AFTER the investment has made a profit and the financial goal was met without any loss but that is purely a hindsight perspective and not actually the issue in this case.
_____________________________________________________________________________________________

When is insurance beneficial? Is insurance ever not beneficial? Explain your answer very well.

A. Insurance is beneficial when it is being used as a hedge against the possibility of catastrophic loss. For example, when someone is young, they carry life insurance while they are working and building up their investments and net worth. This is done so that if anything happens to the individual money earner, their income will be replaced by the insurance (such as a term life policy). As they mature and are ready to retire, their investments and savings now serve as their income so if something were to happen to them there would be no loss of income because the investments and savings would continue to generate revenue for the recipient. So, a person that has adequate savings and investments has no real need for certain types of insurance. However, other type of insurance may still be beneficial depending upon the value of their estate.
B. As stated above, there are times when certain types of insurance are not beneficial but other type may still be to protect assets of the estate of a person when they die.
_____________________________________________________________________________________________
Where would you begin an evaluation of an internal control system? Please explain why?

A. An evaluation of an internal control system should begin by verifying its effectiveness in preventing and detecting fraud. A system of internal control recognizes the basic principle that it should be as difficult as is practical and feasible, for individuals to be dishonest or careless. Such a premise is indeed not based on a cynical view of human nature in general, but rather on the ...

Solution Summary

How would you weigh risk against return?
When is insurance beneficial?
Where would you begin an evaluation of an internal control system?
Explain the details of a fraud scheme that internal controls, due to inherent limitations, cannot impede.
Explain how a company's growth can outpace current controls and provide an example
Explain some major risks inherent in the payroll cycle. How can these risks be mitigated?
Explain how controls and security are related for information assets
Explain the links between business continuity, system availability, and disaster recovery?

$2.19