Problem
If a $100,000 portfolio fell down in value 25% or to $75,000 in value, would you:
• Immediately call your advisor to sell out and you will decide when to get back in?
• Do nothing?
• Find outside money to buy more securities at the lower price? Why?
1) What are five ways to manage risk of conducting business in your company or in Wal-Mart? Risk is defined as a negative consequence of some action the company is taking to pursue their business goals?
2) Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.
3) What would a process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?