Question: What are the different types of risks associated with businesses?Question: Why do businesses have to be proactive in their approach to risk?Question: What are some risks that the government causes for businesses?Question: What are some disadvantages of a sole proprietorship?Question: What is a SWOT analysis?Question: What type of business would benefit most from conducting aSWOT analysis?Question: Why would it be wise for some high-risk businesses toincorporate?Question: How might employees be a threat to businesses?Question: Why is it important to be aware of your competitors?Question: How can customers be a risk to business?Question: What is the role of the business owner concerning risk?

Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Answered: What are the different types of risks…

Business

Finance

What are the different types of risks associated with businesses?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter13: Sustainability Reporting

Section: Chapter Questions

Problem 11MC: Which of the following statements is most often the case? A. Socially responsible businesses tend to...

See similar textbooks

Related questions

Q: A non paying dividend stock is priced at 50. Call option delta is 0.5. Stock volatility is 0.29. By…

A: Here, Spot Price is 50 Strike Price is 55 Call Option Delta is 0.5 Stock Volatility is 0.29

Q: ABC Co. bought 1,000 CALL options of XYZ Corporation with a strike price of ₱52 at ₱2.75 per option.…

A: Exercise of option - Call option is a right to buy the stock at the strike price on expiry date, if…

Q: The common stock of Shepard Auto sells for $47.92 per share. The stock is expected to pay $2.28 per…

A: To calculate the market rate of return we will use following formula Market rate of return =…

Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…

A: Yield on 10 years bond will be the risk free rate,inflation and maturity risk premium.

Q: Given below is the Income Statement of Reaper Corporation for 31 Dec 2019. Net Sales 2000 COGS -1200…

A: Earning before interest and taxes (EBIT) = 700 Tax rate = 0.20 Depreciation = 100 Operating cash…

Q: Speculating with Currency Call Options. ABC Inc., purchased 75,000 units call option on British…

A: An option is a financial derivative that gives the buyer the right to buy or sell the underlying…

Q: Question Owing to perennial complaints by students about the lack of accommodation problems on…

A: Before investing in new projects, profitability of the project is evaluated by using various methods…

Q: Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with…

A: Weighted average cost of capital (WACC) When a firm has different sources of financing, the cost of…

Q: If interest is compounded at 20% per year, how long will it take for P50,000 to accumulate to…

A: Interest rate = 0.20 Initial investment = P50,000 Accumulated value = P86,400 Period = ?…

Q: What is the annualized investment rate% on a Treasury bill that you purchase for $8000 that will…

A: T-bills refers to a debt securities or government bonds issued by the central bank on behalf of the…

Q: Achtung Co uses 3machines to finalize the product. The machines got outdated and it has been…

A: The Net Present Value: The net present value or the NPV is a technique used to assess the…

Q: Gs Co. has insufficient retained earnings to fund capital expenditures and decided to issue new…

A: Floatation cost is the cost to be incurred on issue of new shares. Ke = (D1 /(P0 - F)) + G Where…

Q: If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of…

A: The risk premium on the U.S. Treasury bond will be zero as it is backed by US government and as…

Q: Do you believe that elections have an impact on a country's Investments market (stocks, bonds,…

A: A share of ownership in a firm or corporation is referred to as stock. When a firm does well, stock…

Q: A firm's current investment opportunity schedule and the weighted marginal cost of capital schedule…

A: Capital rationing: It is the demonstration of putting limitations on how much new ventures or tasks…

Q: Assume an investor with the coefficient of risk aversion A=5.5. To maximize her expected utility,…

A: Utility functions are used to measure the risk-reward tradeoff as the maximum return that a person…

Q: If the manager of a gold mine wants to protect its operations against a market price decline, while…

A: It is a financial instrument whose value/price is determined by the given assets. Options, forwards,…

Q: Professor Wendy Smith has been offered the following opportunity A law firm would like to retain her…

A: Upfront Payment $ 49,000.00 Number Hours worked in Month 8 Per Month Rate $…

Q: up to $700 monthly in order to repay the loan. Determine if it is enough for him to agree on this…

A: Loan payment: These represent periodic payments made by the borrower to the lender for the purpose…

Q: Which of the following would constitute an Agency Problem in the context of Business? Check all of…

A: An agency problem is a conflict of interest between an agent and a principal. An agent can be an…

Q: 5. What is the Capitalized Worth, when i= 10% per year, of $3000 per year, startıng in one yea…

A: Capitalized cost of a project can be defined as the present value of all costs that will be incurred…

Q: Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay…

A: Future Value: It is the worth of a current asset at a future date based on an assumed rate of…

Q: rojects. The ihta Tal fates of return are as folloWS: Internal Rate Project of Return 11 12% 15 13…

A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…

Q: Company has insufficient retained earnings to fund capital expenditures and decided to issue new…

A: Cost of equity = (Expected dividend / (Current price - Floatation cost)) + Growth rate Where…

Q: Funding risk is the risk that a firm will not be able to meet its short-term financial obligations…

A: Funding risk is the kind of risk wherein we can say any company not able to raise sufficient capital…

Q: ooking at a $523,000 home. To avoid private mortgage insurance (PMI), she put 20% down and the…

A: LTV that is the loan to value ratio shows that how much can give the loan against property and is…

Q: Recently (March 2022) stock prices have been falling in the UK. Use analytical reasoning to identify…

A: The yield to maturity (YTM) is the annual percentage rate of return on a bond provided the investor…

Q: National Co. has a financial break-even point at P260,000. Th company paid an annual interest of…

A: Fianancial Break even point is the minimum level of EBIT needed to satisfy all the fixed financial…

Q: Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in…

A: WACC = ( weight of equity * Cost of equity) + ( weight of debt * after Tax cost of debt) = ( 1/1.39…

Q: Assume that a company has provided the following information regarding a capital investment…

A: Present value of a future amount With discount rate (r), period (n) and future amount (F), the…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: Annual Worth: It is the equivalent uniform yearly worth of all estimated receipts and costs…

Q: Art purchase a house and lot worth ₱1,410,000, he made a down payment of ₱150, 000 and the remaining…

A: A home loan taken from a bank or a financial institution is termed as mortgage. The home and the…

Q: Which of the following statements is/are true? Statement 1: A key role of financial markets is to…

A: Corporate finance activity involves activities such as the amount of fund required to obtained,…

Q: Calculating missing cash flow On the timeline below, what is the missing cash flow at time 2? The…

A: Future Value: It is the worth of a resource at a particular date which measures nominal future sum…

Q: The duties of an agent when filling out an application include all of the following EXCEPT: A:…

A: Ans: (b) Help the insured make up creative answers to stretch the truth about a past health issue…

Q: Which of the following rebalancing methodologies will ha market impact cost? Buy and Hold Momentum…

A: Rebalancing a portfolio It is a process by which the weights of the assets of a portfolio are…

Q: Reported annual total returns (%) of Vanguard FTSE Emerging Markets Index Fund ETF Shares for the…

A: Compound annual growth Annual growth rate is calculated as shown below. Annual growth rate=Ending…

Q: ATEch has fixed costs of $8 million and profits of $5 million. Its competitor ZTech is roughly the…

A: Operating leverage is a cost-accounting metric that determines how an entire lot a business…

Q: A project with the required rate of return of 11.2% provides annual cash flows of $2,810 during the…

A: Year Cash flow 0 -12200 1 2810 2 2810 3 2810 4 0 5 0 6 5550 7 5550

Q: Use the following table: Present Value of an Annuity of 1 Period…

A: Concept. IRR ( internal rate of return) Internal rate of return is method of calculating investments…

Q: The stock price is $25. A company has reported earnings per share (EPS) of $4.60 and has a dividend…

A: Stock price per share of a company is the value placed by the investors on a stock. Earnings per…

Q: lent on the payment date despite having a USD4,000 sale. (B) ABC Corporation pays a foreign-currency…

A: Step 1 Foreign currency rate changes can harm a given transaction before settlement, which is known…

Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: To calculate the due amount we will use future value formula as follows: Due amount =…

Q: You have $21,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: To calculate the investment in stock X we will solve the following equation Portfolio return =…

Q: Assume the Black-Scholes framework holds. Consider an option on a stock. You are given the following…

A: Here, Stock Price is 50 Option Price is 3.00 Option Delta is 0.611 Option Gamma is 0.020 Option…

Q: Setrakian Industries needs to raise $99.4 million to fund a new project. The company will sell bonds…

A: Bond Price is Sum of all cashflows during the life of the bond discounted at Yield to maturity Bond…

Q: The following data are gathered: · The real risk-free rate is 1.05% · Inflation premium…

A: Treasury Bills: T-bills are the treasury bills issued by the government. These bills are risk-free…

Q: XYZ just went public. As a growing firm, it is not expected to pay a dividend for the first five…

A: To calculate the stock price we will use following formula Stock price = (D6/r)/(1+r)n Where D6 -…

Q: In the purchase of a rice cooker, a buyer pays P 200 cash, and he will discharge the balance,…

A: Cash price of the rice cooker will be equal to the sum of down payment of P200 and present value of…

Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…

A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How can a small-business owner or corporate manager use financial leverage to improve the firm’s profits and return on owners’ equity? Is there a potential danger of using financial leverage?
Which of the following statements is most often the case? A. Socially responsible businesses tend to post higher profits than those not focused on social responsibility. B. Companies that are not socially responsible will have better profits, but have a moral obligation to society. C. Socially responsible investing gives poorer returns than non-socially responsible Investing. D. Investors are more short termed focus and so socially responsible investing should not be a factor in their investment portfolio.
How is it possible for a firm to grow itself out of business and how can this be guarded against as a financial manager?
Why do businesses decide to acquire other businesses? How do they decide to divest parts of their business? What are the risks and benefits of conducting business internationally?
What is NOT a question that needs to be answered when completing financial due diligence? A. Is the company worth what it seems to be? B. Is the deal worth doing? C. All of these choices are questions that need to be answered l. D. Are these any major risks that could be a problem?
A well-run company should align the management’s interest and with the owner’s interests. What are some actions that stockholders can take to ensure that management’s and stockholders’ interests are aligned? Is this important? What are some of the risks/consequences if the management’s interests are not aligned with the owners?
Explain the principle of increasing financial risk and why it is important when assessing the financial and economic merits of a business
Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning stream through the dividend payments they receive. b. One tool of corporate governance is a company's tax avoidance strategy. c. One tool of corporate governance is stock repurchases. d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover. e. One tool of corporate governance is choosing a good investment banker.
Contingent situation is a potential negative event that may occur in the future, such as economic recession, natural disaster, fraudulent activity, or a terrorist attack. Contingencies can be prepared for, but often the nature and scope of such negative events are unknowable in advance. Companies and investors plan for various contingencies through analysis and implementing protective measures. Describe how accountants may help to mitigate the impact of these risks on profitability? (350 words)
Discuss why it is difficult for established companies to innovate in their business models? What approach would allow incumbents to overturn the conventions of their industries before others do?
How is it possible for a company to expand itself out of existence, and how can this be avoided as a financial manager?
how a firm might use a hedging to reduce risk in its business? please include examples