Problem
A. Discuss the 2007-2008 financial crisis and what impact it had on the financial markets. Who was impacted? What caused the crisis, and how can a future crisis be prevented?
B. Assume a person is starting a new business such as a restaurant, barber shop, or spa, for example, and discuss the types of information would be accessed and research to get the business started. For instance, would a person look at the local Small Business Administration's website for guidance on how to fund and setup a new firm? What financial tools would be useful, and how would they assist in the startup process?
C. What is finance? discuss how the study of finance is essential to business today. There are other areas of business, such as marketing, human resources, and management. How does finance impact them? In other words, can a business efficiently run without everyone having some knowledge of the field?
D. A persons boss asked them to put together an informal outline/presentation on the risk-return tradeoff. Discuss the tradeoff. Does a risky investment always equal a big payoff and vice versa? What does it mean to be a risk-averse versus a risk-taker? What types of information must be considered when it comes to risk and return?