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An entity should consider the cost of a control in relationship to the risk. Which of the following controls best reflects this philosophy for a large dollar investment in heavy machine tools?

A. Placing security guards at every entrance 24 hours a day.
B. Having all dispositions approved by the vice president of sales.
C. Conducting a weekly physical inventory.
D. Imprinting a controlled identification number on each tool.

Respuesta :

The answer is D. Your are welcome

Investment risks are defined as the probability of occurrence of a loss in respect to the expected return on any particular investment.

The correct answer is:

Option D. Imprinting a controlled identification number on each tool.

Investment in heavy or big business often comes with a 50% probable chance of losses. The loss or risk associated with the investment is not getting the expected return.

For instance, investment in heavy machine tools has higher risks of losses. One can avoid the loss by imprinting a unique identification number on the tools to track and avoid its robbery.

Therefore, option D is correct.

To know more about investment risks, refer to the following link:

https://brainly.com/question/16491346

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