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The longer it takes to recover the initial investment the: The lower the risk of loss on the investment The safer the investm

The longer it takes to recover the initial investment the: The lower the risk of loss on the investment The safer the investm

Sometimes it can be tempting to exaggerate a proposal that is really important to you as a manager. The postaudit helps by: O

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Suppose the payback period of an investment is very long. Then more time will be required to recover the investment. In such a scenario , high risk will be involved as the the long duration of investment recovery increases the chance of losing the investment in due course of time . In longer duration an unexpected situation may arise like economy downfall, recessions, etc. Longer it takes to recover initial investment ,higher will be the risk of loss.

Answer: Higher the risk of loss on the investment

During the post audit stage, the accepted proposal will be reviewed again to evaluate its effectiveness and success. This insurance that even the manager exaggerates the proposal for any personal benefit , he will be questioned and held responsible for any miss-representation or false information provided during the initial proposal presentation stage.

Answer: Keeping managers accountable in their proposals since they know the outcome will be reviewed

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