There was a general fear that the European powers, especially Spain, would try and retake some of their territory in the Western hemisphere.
As a result, the Monroe Doctrine stated that the United States would not tolerate European meddling in the Western Hemisphere.
Answer:
The type of risk related to the scenario presented is called Operational Risk
Explanation:
Operational Risks are strongly related to human error and or external events. We know that the car is new. Hence the possibility of a breakdown from a manufacturer or factory defect (given the question) is highly unlikely.
If the car has been fixed 4 times in 6 months, it is very likely that Caroline is not doing something right. E.g.
- She probably doesn't drive too well and has been in one too many accidents or
- Perhaps she drives just well enough to get herself to her intended destinations but is not skilled enough with defensive driving.
Or it just may be that she has been very unlucky with other drivers.
In any case, the error is human-elated and maybe external hence operational risks.
Other examples of operational risks are:
- Accounting errors
- Data entry errors
- It system failure
- Non-reporting errors
- Power failure etc
- Utility downtimes
Besides loss of money as evidenced in the question, other resultant effects of operational risks are:
- Increased Overhead and
- Loss of goodwill reputation
Cheers
On January 10, 1901, an enormous geyser of oil exploded from a drilling site at Spindletop Hill, a mound created by an underground salt deposit located near Beaumont in Jefferson County, southeastern Texas. Reaching a height of more than 150 feet and producing close to 100,000 barrels a day, the “gusher” was more powerful than any previously seen in the world. A booming oil industry soon grew up around the oil field at Spindletop, and many of the major oil companies in America, including Gulf Oil, Texaco and Exxon, can trace their origins there.
Part of speech in myth is myth because myth is it's own part of speech
The risk associated with a firm's operations, ignoring any financing effects, is known as <u>business</u> risk.
Leverage ratios like debt-to-equity and debt-to-total capital rise as debt levels rise. Covenants, which require a company to satisfy specific interest-coverage and debt-level standards, are frequently attached to debt financing.
Compared to bank debt financing, stock equity financing can increase businesses' desire for innovation risk taking more, and is more effective at boosting technological innovation performance by encouraging businesses to take business risks.
Both the profitability and the risk of a company's operations are impacted by financial decisions. For instance, increasing cash holdings lowers risk, but because cash is not an asset that generates income, converting other asset classes to cash lowers the firm's profitability.
Learn more about financing here
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