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purchase of insurance or by building up a contingency
fund.
(iii) Losses may be financed by loans and repaid over the
next period of time.

Q3. What is Input-Output analysis ? How does it differ
from flowcharts?

Ans. Input - Output analysis is a technique developed by
economists for tracing the flow of goods and services
through an economy, and can equally be used for
identifying
(a) the contribution is different parts of an organisation
make to total earnings
(b) any interdependencies between those parts.

The, like flowcharts, input - output analysis can help to
reveal the exposure of an organisation to risks of disruption
of its business. The analysis is based on the simple logic
that the output of one party becomes input of another
and that both can be displayed in a single diagram. For
e.g, a motor dealer and repairer can be used as an example.

It can be seen that tyres are purchased for three of the
departments - servicing, body shop and forecourt. The

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