Exam Flashcards
When a company plays a role in society through sponsorship and community projects, it has a ?
Stakeholder perspective
What is the main purpose of a balanced scorecard?
Monitor the progress of plans
What is a control cycle?
Production of reports by exception to show where action may be needed
When must a breach of GDPR be reported to ICO?
72 hours
What is the internal rate of return used to measure?
Financial Viability of undertaking future projects
What is usually the difference between the quick ratio and current ratio?
Stock
Why would two organisations in different countries form one organisation?
Reduce solvency capital requirement
What is the consequence of reserves being used to fund projects?
Subsequent increase in profits can be used to pay shareholders
What is the main role of the internal audit team?
Verifies the reliability and accuracy of manager reports
What is the role of first response in a claims team?
Minimise further damage
What does ROE indicate?
The profit the insurer is making relative to it’s capital
What is the third line of defence?
Determine changes required to reduce the problem
What is an activity based costing system?
Invoiced by a central department on a cost per unit basis
Which distribution channel issues white label products?
Retailers
A tactical plan determines what?
Development of new products over a two year period
Which companies must have articles of association
All registered on companies house
A balance sheet records what
NET financial position
If claims handling is outsourced, who is responsible for compliance
The insurer solely
What is the formula for return on capital employed?
Profit pre interest and tax / (share capital + reserves + borrowings)
What is the formula for return on equity?
Profit after tax / shareholder equity
What is the formula for liquidity ratio
Current assets / current liabilities
What is the difference between the current and quick liquidity ratio?
Exclude stock for quick
What is the insurance liquidity ratio?
Total liabilities / (cash + investments)
What is the gearing ratio?
Long term borrowings / shareholder equity
What is the solvency ratio?
Net assets / earned premium net of insurance
