1. What type of trust is applicable in thì situation?

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: What is meant by a dilutive security?

A: Dilutive security is a type of investment security that helps the company increase its equity…

Q: EXPLAIN THE ADVANTAGE OF offshore trust?

A: Offshore trust is the planning tool to protect your assets, This trust is created in abroad, It is…

Q: Describe what is the assumed liability?

A: An assumed liability is an obligation under the terms of the agreement assumed by a party. Insurance…

Q: Which of the following risks cannot be hedged? A. Credit B. Liquidity C. Currency D. Duration

A: Some risk can be hedged using derivatives

Q: How does a trust works? Explain step by step

A: Answer: Trust is the legal entity that can allow two different parties trustor and trustee to be in…

Q: What is the responsibility of whoever in the context of risk management?

A: Risk management-It is an important management process as it helps to minimize the impact of an event…

Q: What is meant by risk? Why must it be managed properly?

A: Risk can be defined as the probability of an event occurring and having consequences. Standard…

Q: What is a derivative security?

A: Financial Instruments: It represents assets that are traded in the financial markets and are…

Q: Risk management focuses on what?

A: Organizations assess the stakeholder’s responses as risks or opportunities which would affect the…

Q: eristics?

A: Step 1   Risk is defined as an occurrence that harms financial performance and/or reputation as a…

Q: WHAT IS THE ADVANTAGE OF offshore trust?

A: Offshore trust companies can be defined as those companies which help customers with a high net…

Q: What is confidentiality? Give an example showing a violation of confidentiality.

A: Confidentiality is one of code of ethics for Auditor.

Q: Explain criteria that investors should consider when selecting a unit trust

A: A unit trust, also known as a mutual fund, is a type of investment vehicle that pools money from…

Q: Define Risk in general

A: In finance, risk is defined as the level of vulnerability that potentially creates financial loss…

Q: What is reinvestment rate risk?

A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…

Q: What are collaterals?

A: Assets are those resources that have some economic value held by an corporation, individual, or…

Q: What is tip of financ

A: Finance is generally described as managing money, which encompasses actions including such…

Q: What is the guiding objective is that lessees and lessors provide disclosures?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Explain Derivative security?

A: Derivatives security: A derivative security is considered as a financial instrument whose value is…

Q: What are retakaful and reinsurance and how takaful products can be used for hedging purposes?

A: Retakaful and reinsurance : In simple words, The Muslim reinsurance sector is referred to as…

Q: What Constitutes Default?

A: When an individual or a company is unable to pay the loan amount then it's termed as default. It…

Q: How contract is discharged by subsequent impossibility?

A: Discharge of agreement or contract implies the end of the authoritative connection between the…

Q: Detail some of the advantages and disadvantages of setting up a trust.  Why set up an irrevocable…

A: Setting up the trust Advantages: There is a possibility of limited liability when there is an…

Q: Which of the following is not a principle of trust services?a. Security.b. Authentication.c.…

A: Trust Services:   Trust services are assurance services that report over reliability of the…

Q: What are the two primary reasons for using preemptive rights?

A: The right of the shareholders of a company to buy additional shares in any future issue of the…

Q: Define fair value hedges.

A:

Q: Finaancial risk is not directly associate with..    a) ROE b) EBIT c) EPS d) EAT

A: The Financial risk is a risk of loosing money on am investment or investment opportunities.…

Q: How might you mitigate the risks that are mentioned? Market, Liquidity, and Operational.

A: Businesses face various types of risks that affect survival and growth of the company. Risks that a…

Q: What is liquidity (security)?

A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…

Q: Distinguish between risk and return and briefly describe the relationship that exists between them.

A: Risk: It is the potential loss of an investor for investing in financial security based on his loss…

Q: What is exchange risk, as distinct from exposure?

A: Foreign exchange risk or foreign exchange exposure refers to the financial risk associated with a…

Q: How is internal control applied to liabilities?

A: It is often seen that frauds, employees thefts, and manipulation of records incur in the…

Q: Explain about the Hedging against fair value risk.

A: Financial instrument:   It is a monetary contract between two parties which acts as an evidence of…

Q: iscuss the role of a receiver. How does the role of a receiver differ from that of the administrator…

A: Step 1 An  Receiver is appointed  by the Insolvency Service Board  on the orders of  court to act in…

Q: A trust can be created for any purpose, legal or illegal.

A: Trust is a right in property held by one party for the benefit of other. Trustee is the person who…

Q: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.