ASSIGNMENT 3 Answer all questions from this section (1) City Bus Corporation provides school bus transportation to private and public schools in Lancaster County. City bus owns 50 buses that are garaged in three different cities within the county. The firm faces competition from two larger bus companies that operate in the same area. Public school boards and private schools generally awards contracts to the lowest bidder, but the level of services and overall performance are also considered. Required (a) Briefly describe the steps in the risk management process that should be followed by the risk manager of City Bus. (15marks) (b). Identify the major loss exposure faced by City Bus. (5marks) (c). For each loss exposure identified in (b) identify a risk management technique or combination of techniques that could be used to handle the exposure. (10marks) (2) If Candies own personal property, she will consider the gap between the replacement cost and the Actual Cash Value. The table below show hypothetical losses of the effect of depreciation, which based on age and condition of the property; the older the item, the greater is the amount of depreciation. Item Age Replacement cost (GH) Depreciation (%) Actual Cash Value GH Television set 5years 900 Sofa 4years 1500 Refrigerator 10years 800 3 end Tables 15years 1200 3 mens shoes 2years 200 Dresses 5years 500 Cosmetics 6months 600 Kitchen dishes 4years 250 Home theatre 4years 1400 Ceiling fan 2years 500 Additional information Take depreciation for television set, dresses @ 66%, Sofa, kitchen dishes and home theatre @60%, whereas refrigerator @75%, 3end tables @80%, 3men shoes and ceiling fan @40%, lastly cosmetics @ 20%. Required (a) Calculation the Actual Cash Value (ACV). (10marks) (b) Calculate the gap between the replacement cost and Actual Cash Value. (10marks) (c) Describe the gap between the replacement cost and Actual Cash Value. (10marks)