Market risk concerns with the changes occur in the financial market; corporate risk is associated with the organization itself; and standalone risk reflect the problem happen within a single department of an organization.
Here, all the three risks in regard to a portential project are breifly described:
- Market risk reflects the effect of loss in the project due to the overall performance of the financial market. Market risk arises from fluctuations in interest rates, exchange rates, stock prices, and commodity prices.
- Corporate risk refers to a risk to the project that is associated with an organization’s internal or external factors that may impact profitability negatively.
- Standalone risk is a risk that is concerned with a single operating unit, or asset of an organization that may damage the project.
Of the three risks, the market risk is the most relevant because in regard to the project the market risk measures all the factors which have impact on the performance of financial markets.
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Answer:
Net present Value (NPV)
Explanation:
The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.
Answer:
The answer is A. True.
Explanation:
Marginal Cost is the cost of producing one more product unit.
Marginal Cost = Average Total Cost / Average Goods Output
Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.
Answer:
Third party beneficiary.
Explanation:
This is easily seen in contracts as it is said that a third party beneficiary is a person that benefits from an agreement between two persons or a contract between two persons. This is despite the fact that this said person has no effect or was not in any way a part of the said contract.
A third party beneficiary can be denied the rights to compensation of the contract, especially when contract is not fulfilled.
Rights which makes the third party beneficiary valid and concretely a part of the contact are been attached and solidified if the said contract comes through.
