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:
8.5
Explanation:
Account receivable turnover is calculated by dividing the net credit sales by the average of account receivable .
Net sales $569,000
Account receivable $91,000
Account receivable - $43000
Average account receivables = (91000+43000)/2= $67,000
Account receivable turnover = 569000/67000 =8.5
If projects are mutually exclusive, only one project can be chosen. The internal rate of return (IRR) and the net present value (NPV) methods will not always choose the same project. If the crossover rate on the NPV profile is below the horizontal axis, the methods will _<em>always_</em> agree.
NPV is the abbreviation of Net present value which is a financial metric that seeks to capture the total value of an investment opportunity.
For mutually exclusive projects, if the IRR or internal rate of return is greater than the cost of capital, you accept the project. If it is less than the cost of capital, then you reject the project.
Also, If projects are mutually exclusive, accept the one with the highest IRR or internal rate of return by assuming it is above the hurdle rate.
Therefore, the answer is always.
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Why is strategy implementation referred to as the "graveyard of strategy"? Ma<span>nagers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.
Although tons of planning, time, and research is put into developing a plan ultimately it is up to a manager and management team to put the strategy in play and implement it. If the plan does not get implemented or implemented correctly, this can fall back on being poorly executed by management.
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Answer:
A budget is a financial plan used to estimate future income and expenses. The budgeting process may be carried out by individuals or by organizations. Budgets help an entity determine whether it can continue to operate with its projected income and expenses.
Explanation:
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