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densk [106]
3 years ago
12

Match the given situations to the risks faced by the business. economic risks, natural disasters, right product, operations risk

, due to inefficiency of management, the business plan has failed, the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit, flash floods have damaged all machinery in the main manufacturing unit, and there have been foreign exchange rate fluctuations.
Business
1 answer:
Tems11 [23]3 years ago
7 0

Answer:

Economic risks - there have been foreign exchange rate fluctuations.

Foreign exchange rate fluctuations are an economic risk, and they can represent a significant risk for many companies, for example, for companies that import or export goods.

Natural disasters - flash floods have damaged all machinery in the main manufacturing unit

Flash floods occur when a lot of rain falls in a very short period of time. They are a type of natural disaster.

Right product risk - the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit

In this case, the company experienced the risk of choosing the right product or not, with the adverse effect that it did not choose it.

Operations risk - the business plan has failed

The goal of a business operation is to carry out the business plan, if the daily operations of the business fail to fulfill the business plan, then, the company has incurred in operations risk.

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Answer:

Rivercity Coffee Shop

Chad cannot sue Jose.  The $10,000 is paid to Jose is a bribe.  Since a bribe is not legal, it cannot form the basis for an enforceable contract.

Moreover, the offer by Chad is an antitrust and anti-competition consideration that is legally frowned upon. illegal contract

Explanation:

For a contract to be enforceable, it cannot be illegal.  A bribe is illegal.  The basis for the contract is illegal.  Therefore, Chad cannot sue Jose.  Since Jose decided to breach the contract, neither Chad nor Jose is entitled to any compensation.  Jose cannot be held liable for non-performance.

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3 years ago
Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at
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Answer: 0.9

Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

where,

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g is the growth rate

r is the expected return

With the given figures we have,

84 = 4.20 / r - 0.08

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r - 0.08 = 4.20/84

r = 4.20/84 + 0.08

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The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

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Er is expected return

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Rm is the market return

b is beta

Slotting in the figures gives,

0.13 = 0.04 + b( 0.14 - 0.04)

0.13 = 0.04 + b (0.1)

0.13 - 0.04 = 0.1b

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Explanation:

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