1. Risk managers use a number of methods for managing risk.For each of the following, what method for handling risk is used? Explain your answer.

i. A company's decision to set aside funds for the eventual replacement of the shed's roof rather than purchase insurance policy to pay for replacement.

ii. The installation of an automatic fire sprinkler system in a hotel

iii. The decision not to produce a product that might result in a product liability lawsuit

iv. Requiring retailers who sell the firm's product to sign an agreement releasing the firm from liability if the product injures someone

v. Makola market Traders Association forbid smoking or open fires within the market premises

2. A. Pure risks ideally should have certain characteristics to be insurable by private insurers. B. List and explain the six characteristics of an ideally insurable risk.

3. A large oil company requests $200 million of liability insurance to cover its oil business. State Insurance Company (SIC) has a reinsurance contract with Ghana Re that enables the coverage to be written immediately. Under the terms of the contract, SIC pays 30 percent of the losses and retains 30 percent of the premium. Ghana Re pays 70 percent of the losses and receives 70 percent of the premium, less a ceding commission that is paid to SIC. Answer the following questions:

i. What type of reinsurance contract best describes the arrangement between the two insurance companies?Explain your answer.

ii. Supposing a $100 million covered loss occurs, how much will each insurance company have to pay? Explain your answer.

iii. Why does Ghana Re pay a ceding commission to SIC?

4. Enumerate five (5) payments which are exempted from withholding tax

5. Taxation of Individuals and businesses is based on their residence status. State the residence rules with respect to: A- individuals, B- partnerships, C- companies, D- trusts

6. Explain contract of service and contract for service stating 5 specific dichotomies between the two phrases as used in Taxation