ABC Company Latisha Barker Carolyn Woods ACC 206:

ABC Company Latisha Barker Carolyn Woods ACC 206:  Research Paper example
Undergraduate
Research Paper
Finance & Accounting
Pages 5 (1255 words)
Download 0
Risk profile is the representation of a company’s overall exposure to specific risks or group of risks at a given point of time. A company’s desired and targeted risk profile depends on its corporate governance approach, overall strategic objectives …

Introduction

A company’s desired and targeted risk profile depends on its corporate governance approach, overall strategic objectives and risk appetite. I. Overall Risk Profile The two basic types of risks that the company ABC might face based on the current economic and industry issues are- Systematic Risks- It influences a large number of assets and protection against such risk is virtually impossible. Unsystematic Risks- It is sometimes referred to as “specific risks”. Diversification is the only way to prevent unsystematic risk. The other fundamental risks that the company might face are- Credit or Default Risk- It arises when a company will be unable to pay the contractual principle or interest on its debt obligations. Liquidity Risk- It arises when the liquid resources available to a company will be unable to pay the current dues. Interest Rate Risk- It arises when the value of an investment changes due to change in interest rates (Yusof, 2007, p.7). Political Risk- It represents financial risk, which arises when the government of a country changes its policies suddenly (Yusof, 2007, p.9). Market Risk- It arises as a result of day-to-day fluctuations in stock prices, so it is also referred as volatility. ...
Download paper
Not exactly what you need?

Related papers

Activity Based Costing (ABC)
Historically, ABC started to become popular as an alternative approach to traditional cost accounting about three decades ago, where the latter has become increasingly proving its irrelevance (Emblemsvag, 2010). The increasing automation of production as compared to being labor-intensive, the multiple product lines compared to small number of products being produced, and the increasing overhead…
Activity-based costing (ABC) in service industry
However, it has often been argued that implementing such pricing strategies might prove to be quite challenging in case of service oriented companies in comparison to the product rendering companies owing to the greater involvement of intangible assets and liabilities. In this regard, various models have been developed with the intention to assist in determining the accurate costs incurred in…
Latest effort at transparency just muddies water’ by Carolyn Pugsley and Alexandra Module
The article is written by Carolyn Pugsley and Alexandra Module. The main objective of the article is to state the reforms which are adopted by the federal government of Australia in order to disclose the remunerations of seniors executives of companies. This reform has been adopted by the Australian government with the intention of facilitating better transparency for shareholders with respect to…
ABC Financial Business Research
Business planning to expand its sales with a 25% increase requires the management and its shareholders to set their targets and goals through a forecast budget. An effective business will lays out the perfect strategy in realizing the companies’ goal of profit maximization. By having the capability to read the agency’s future, it is practical to form feasible strategies that work in favor of…
Assignment of Acc
129). Among number of departments, the name of finance department is one of them. Finance department is responsible to manage and utilize the funds of the company as a whole. There are number of concepts that come under the ambit of finance and its related literature. Concepts are now moving and enhancing with perfection as well (WILLIAM G. DROMS, Jay O. Wright, 2010, pp.176). Among number of…
ABC Company Final
In the US alone there are, several companies dealing with the same product of Cedar roofing and siding shingles. Therefore, ABC Company has a large market to supply to raising its market share although in a very competitive market. ABC Company is a company that specializes in making cedar roofing and siding shingles. It has a 25% sales margin and has a growth target of three million in the next…
ABC and ABM : Together or separate?
The technological improvement in the different countries has made the world a bigger platform for competition. These changes can be noticed in the world of information in the financial as well as the non financial fields. Most of the organisations in the present day rely on the data and subsequently the information about the various performance metrics of the different functions, employees as well…