Financial Risk
The financial ratio categories are Liquidity, Activity, Profitability, and Coverage (Kieso, Weygant, & Warfield, 2008). These ratios are comparisons of different financial accounts that show financial performance measures in different areas. Fluctuations of these ratios can be red flags. These fluctuations can show increases or decreases in performances. Increases could indicate growth, but decreases could show negative signs in performance levels that need to be analyzed and addressed. Liquidity, or solvency, ratios measure the short run ability to pay maturing obligations and include the current ratio, current cash debt coverage ratio, and the quick ratio. The current ratio measures current assets to current liabilities. The current cash debt coverage ratio measures net cash from operating activities to average current liabilities. The quick ratio measures cash, marketable securities, and net receivables to current liabilities.

The Activity, turnover or efficiency, ratios measure the effectiveness of using assets and include receivable turnover ratio,…...

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Bibliography

Beginner's Guide to Asset Allocation, Diversification, and Rebalancing. (n.d.). Retrieved from SEC:  http://www.sec.gov/investor/pubs/assetallocation.htm 

Buffett, W. (2010, Jan 7). Modern Portfolio Theory: Why It's Still Hip. Retrieved from Investopedia:  http://www.investopedia.com/articles/06/MPT.asp#axzz1acTq56Kw 

Derrick, J. (2012, Jan 30). Understanding Stocks: The Concept of Beta. Retrieved from benzinga: http"://www.benzinga.com/general/psychology/'12/01/2300328/understanding-stocks-the-concept-of-beta

Kieso, D.E., Weygant, J.J., & Warfield, T.D. (2008). Full disclosure in Financial Reporting. In D.E. Kieso, J.J. Weygant, & T.D. Warfield, Intermediate Accounting I, II, & III (pp. 1316-1318). Hoboken, NJ: John Wiley & Sons, Inc.

This means that not bank loans or stock issuing would occur. The two partners would share rights and responsibilities directly derived from the amounts of capital deposed.
Using a partner is rather similar to the issuing of stocks, but a major difference however occurs. While the issuing of stocks generally occurs within an open market, the shares would be likely purchase by numerous small investors. The amount of stocks purchased will be controlled by the business owner and most importantly, the power of the shareholders would be limited. With a single investor however, this has more power to become involved and influence organizational decisions. Ultimately, having a partner is a direct investment method, whereas selling stocks onto the market is an indirect investment method.

Once the matter of having sufficient funds to invest in the new venture has been resolved, the owner, or owners, has to consider the foreseen return on…...

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References

Bender, R., 2002, Corporate Financial Strategy, 2nd Edition, Elsevier Science and Technology Books

Fabozzi, F.J., Peterson, P.P., 2003, Financial Management and Analysis, 2nd Edition, John Wiley and Sons Inc.

Hence, the likelihood of having to repurchase a large amount of repurchases would result. This was increasingly risky as the company spiralled into much lower reserves than it would admit publicly. The increasing risks were recognized by New Century employees. Despite efforts by these employees to suggest changes, the response by Senior Management was generally to reject or ignore these suggestions.
Senior Management was therefore fully aware of the increase of early payment defaults on loans as early as mid-2004. Although rising interest rates exacerbated the risks inherent in the type of products offered by New Century, these were ignored by Senior Management, who continued to capitalize on investor demand without any regard for the probability of repurchase requirements. The inevitable, however, occurred, and New Century faltered under the pressure.

Additionally, Senior Management also failed to provide inadequate attention to the issue of investor "kickouts." Relatively elementary loan rejections such as…...

Financial Risk Management
Over the past decade, there have been tons of arguments over financial risk management especially if it is logically defensible in financial terms. Most risk managers have been able to observe both a better acceptance of their discipline along with a better enthusiasm on the part of businesses to employ the word "risk management." In the financing and banking business, nevertheless, these attitudinal changes have donated to a condition where the manager of pure risk has gotten lost among the hordes of financial risk managers. The thing that makes this situation widespread and debatable by all sides is the fact that the management of financial risk, otherwise recognized as balance sheet, speculative market, or, more generally, business risk, is the financial society's trade and stock. The argument has always been that finance has been founded on two supports: risk and expected returns. In times such as today,…...

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Works Cited

A, B., 2005. Multinational Finance. In: s.l.:FT Prentice Hall, pp. 180-190.

Adedeji A, B.R., 2002. Why firms in the UK use interest rate derivatives. Managerial Finance, 28(11).

Bailly N, B. DH E.S., 2003. UK Corporate use of derivatives. European Journal of Finance, Volume 9, pp. 163-193.

J, S., 2001. Managing Currency Risk . In: s.l.:John Wiley and Sons, pp. 33-40.

Financial isk Management: The Sports Industry
Financial risk management is the process of reducing a firm's exposure to various risks. According to Emery (2011), it is a process that enables organizations to reduce failures and increase their profitability by carefully evaluating the risks they are exposed to and developing strategies to manage them. The sports industry can learn a lot from the business industry in regard to risk management as it is often prone to issues such as corruption and drug abuse, which it is often insufficiently prepared/equipped to deal with. The office of Sport and ecreation Tasmania (as cited in Emery, 2011) claims that today, risk management is a central part of sports organizations' strategies because it enables management result to balanced and responsible decision making. This text examines risks sports businesses are exposed to, how financial risk management can be applied, and the strategies that should be applied to…...

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References

Emery, P. (2011). The Sports Management Toolkit. New York, NY: Routledge

Frigo, M.L. (2008). When Strategy and ERM Meet. Strategic Finance. Retrieved 24 January 2015 from  https://driehaus.depaul.edu/about/centers-and-institutes/center-for-strategy-execution-and-valuation/center-sev-initiatives/Documents/11When_Strategy_and_ERM_Meet.pdf 

Troelsen, T. & Kupperman, B. (2006). What sport can learn from business about risk management. The Olympic Capital Quarterly, Vol. 1(3): 1-7

Business and Financial isk
There are many business and financial risks that are dealt with by companies each and every day. Among these are risks dealing with interest rates, foreign exchanges, credit, operations, and commodities. Organizations have to learn how to measure these risks, and they need to take global initiatives that they can use in financial risk management in order to ensure that they are as successful as possible. Protecting themselves financially takes work, but it has to be done if the company is to remain viable in the marketplace. In order to understand how to identify and address the major risks, a company needs skills and knowledge. Or, more appropriately, it needs people with skills and knowledge. The right people can make all the difference in an organization (Flyvbjerg, et al., 2003; Markowitz, 1952). Finding those who are trained to identify and understand risks allows the company to build…...

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References

Flyvbjerg, B., Bruzelius, N. & Rothengatter, W. (2003). Megaprojects and Risk: An Anatomy of Ambition. NY: Cambridge University Press.

Horcher, K.A. (2005). Essentials of financial risk management. NY: John Wiley and Sons.

Markowitz, H.M. (1952). Portfolio Selection. The Journal of Finance 7(1): 77 -- 91.

McNeil, A.J., Frey, R., & Embrechts, P. (2005). Quantitative risk management: concepts, techniques and tools. NY: Princeton University Press.

Second and third supporting opinions center on the improvement of the financial system. The current Administration will be able to develop better systems to manage risk across the financial system. In this will be the development of better ways to identify risk. This will lead to a more robust and more transparent system, when it all comes together (Johnson & Kwak, 2009). A complementary component of the healthier system is increased disclosure.

Johnson and Kwak (2009) use this anticipated increased disclosure as their third supporting opinion. They theorize that increased disclosure requirements will be developed for off-balance sheet exposures, including items like structured investment vehicles. Hedge funds will require some measure of disclosure as well. Each of these should help revitalize the financial system and prevent similar problems from occurring in the future.

Three Opposing Opinions/easons:

The three opposing opinions to Johnson and Kwak's (2009) theory that the United States will be able…...

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References

Johnson, S. & Kwak, J. (Jan-Feb 2009). The new world of financial risk. Financial Executive, 36(6). Retrieved June 5, 2009, from Academic OneFile.

Ethics and Derivatives
Ethical and Financial Risks of Derivatives

This paper examines the ethical and financial risks of derivatives. The paper discusses moral philosophies, how white collar crime differs from blue collar crime, and reviews the role of corporate culture and banking industry leaders in the banking industry meltdown that contributed to the worst recession in U.S. history.

The moral philosophy most applicable to understanding the banking industry meltdown is teleology. Teleological ethics holds that an action is right or wrong in terms of the consequences that result from it. From the perspective of the banking industry, this consequentialist approach defines their ethics in terms of whether an act produces a desired result. Given that their desired results were the advancement of self-interest and the accumulation of wealth, any action that produced these results would be considered ethical.

The single-minded pursuit of profit to the disregard of all other considerations, including risk to stakeholder…...

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Works Cited

Childress, J.R. (2011). Why banks should focus on culture, now more than ever. The Principia Group. Retrieved November 18, 2011 from:  http://www.theprincipiagroup.com/downloads/Why-Banks-Should-Focus-On-Culture-v2.pdf 

Nasiripour, S. (2011, October 5). U.S. banks defer 60% of executive bonuses. The Financial Times. Retrieved November 18, 2011 from:  http://www.ft.com/cms/s/0/1825e95a-ef61-11e0-bc88-00144feab49a.html#axzz1eA9LkgPM 

White, B. (2010, March 10). The utilitarian vs. Kantian methods of white collar crime punishment. Retrieved November 18, 2011 from:  http://lawprofessors.typepad.com/whitecollarcrime_blog/2010/03/the-utilitarian-vs.-kantian-methods-of-white-collar-crime-punishment.html

Controlling the Medico-Legal CostsControlling the medico-legal costs of practicing physicians involves a multi-faceted approach. One of the key strategies is the implementation of a robust risk management system. This system can help identify potential risks and mitigate them before they turn into legal issues. Regular training and education for physicians on best practices and legal requirements are integral parts of this system.Another aspect to consider is the practice of defensive medicine. Physicians often administer unnecessary services to patients to protect themselves against future claims of negligence. While this can lead to higher costs, it can also reduce the risk of lawsuits. However, it's important to strike a balance to ensure that defensive medicine doesn't lead to excessive healthcare costs.Insurance plays a crucial role in protecting physicians against the financial risk of patient claims alleging harm caused by medical error. The cost of liability insurance can be particularly high in some…...

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References

Girotra, K., & Netessine, S. (2011). How to build risk into your business model. Harvard

Business Review, 89(5), 100-105.

Most developed economies, however, allow the market to set exchange rates, only influencing currency values through indirect means such as the increased or reduced sale of bonds to foreign entities and individuals, or through other means of international wealth exchange. Essentially, all manipulations of exchange rates and actions based on predictions of exchange rates are focused on the forward exchange rate, or the predicted rate of exchange between two currencies at a future point in time.
The spot exchange rate, on the other hand, is the rate of exchange at the current moment in time. It is through a comparison of the spot rate and the forward rate of exchange -- inasmuch as it can be predicted with any accuracy -- that companies and businesses make decisions that affect either the exchange rate itself (in the case of some governments, notably China in the modern period), or more often make…...

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References

Christofferson, Peter F. Elements of Financial Risk Management. San Diego: Elsevier Sciences, 2003.

Comptroller of the Currency Administrator of National Banks. Interest Rate Risks. 1997. Accessed 19 March 2010.  http://www.occ.treas.gov/handbook/irr.pdf 

Cusatis, Patrick and Martin R. Thomas. Hedging Instruments and Risk Management. New York: McGraw Hill, 2005.

Dun & Bradstreet. Financial Risk Management. New Delhi: McGraw Hill, 2008.

Financial esource Management
eaching a financial decision regarding heath care services

All forms of industries deemed financial management as expressive in origin till the 1960's. Its basic and sole role was to ensure financing for completing the business's operatives and functions. The department for business planning or marketing would project a net total for meeting the services and meeting daily demands; managers would calculate the assets required to complete a given project needed, equipment's, supplies and building. Financial management is a field which focuses on business securities as well as the markets in which they are in key demand. Also, more emphasis is made on how businesses can tap new markets and unlock their hidden potential. As a result, financial management books were pretty explanatory and predictable in origin during those times. (Sandrick, 2008).

These days, financial management plays a pivotal role in day-to-day operations of a business. The responsibility of financial management…...

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References

Allen, S., and M. Bombardieri. 2008. "A Healthcare System Badly Out of Balance." The Boston Globe, November 16.

Glaeser, E.L. 2004. "The Governance of Not-for-Profit Organizations." The International Journal of Not-for-Profit Law 6 (3).

Halvorson, G.C. 2005. "Healthcare Tipping Points." Healthcare Financial Management (March): 74 -- 80.

Helvin, L.K. 2008. "Caring for the Uninsured: Are Not-for-Profit Hospitals Doing Their Share?" Yale Journal of Health Policy, Law, and Ethics (summer): 421 -- 70.

Financial Analysis of Bestwish Limited
Company Overview

Bestwish Limited produces extensive range of quality products such as gift dressing, greetings cards, and plush merchandise of more than 50,000 stocks. The production of different categories of products involve between 2 and 15 processes. The company produces standardized products and custom designed products ordered from customers on contract basis. However, Bestwish Limited is facing challenges to control the costs because of varying production process, reliance on indirect costs and large number of stock keeping units.

Bestwish Limited has just closed the 2010 fiscal year account and the company is finalizing the 2011 budget. Bestwish intends to analyze the 2010 financial statement to present the accurate picture of the company financial performances.

Objective of this report is to analyze 2010 financial statements to assess the viability of Bestwish Limited.

Task

Attn:

Audit Committee of the Board

Finance Director

Subject: Financial statement Analysis

Date: 27 January 2013.

This report verifies the 2010 financial statement of…...

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References

Drury, C. (2009). Management Accounting for Business, 4th Edition (Cengage Learning EMEA, ) ISBN 1408017717.

Harris, R. And Sollis, R. (2003).Applied Time Series Modelling and Forecasting (John Wiley and Sons) ISBN 0470844434

Glynn, J. Perrin, J. Murphy, M. And Abraham, A. (2003).Accounting for Managers, 3rd Edition.(Thomson Learning) ISBN 186152904X

The Times 100, (2012). Financial statements and reporting A Cadbury Schweppes case study. The Times 100 Business Case Studies.

Financial Proposal: Dorchester, Ltd.
As discussed in earlier papers, for Dorchester, the final decision as to which particular nation to invest in is dependent on a range of distinct scenarios; these factors naturally impact the selected acquisition target. Before the acquisition target is selected, the nation which houses the potential acquisition target needs to be scrutinized closely. For instance, the trade environment of the nation where the prospective acquisition is located needs to be assessed, since this factor will impact the cost and ability to engage in trade. The political environment of the nation where the prospective target resides is also a crucial factor that needs to be examined closely. No potential targets exist in peaceful vacuums; rather all the prospective nations looked at during this course have some element of political risk attached to them. Furthermore, as discussed during earlier assignments, it's been found that political stability of a nation…...

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References

Brown, C. (2011, January 20). How to Finance an Acquisition. Retrieved from Inc.com:

 http://www.inc.com/guides/201101/business-acquisition-financing.html 

Ford, P. (2010, August 17). China's economic status is good news for the country ...

right? Retrieved from Csmonitor.com: China's economic status is good news for the country ... right?

Financial Appraisal of yanair
yanair's Financial Appraisal

In this report we provide an elaborate financial appraisal of yanair for a naive investor with no financial expertise.

The key conclusions of this report are:

- yanair has a very strong as well as continuously expanding market position which is enabled by its expansion of its fleet by 40 new aircrafts to a total of 272 as well as the opening of new routes (328) and bases.

-One reason as to why yanair has achieved as well as maintained its very strong position is its dedication to quality service care and service provision. These approaches have ensured that the company has an exceptional financial performance as well as improved efficiencies.

The Strategic Issues that are facing yanair

The current increase in fuel prices by about 37% which the company attempted to offset by the instituting a 12% increase in average fare. The changes in the price of fuel as…...

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References

Paladin (2011).Paladin Labs 2010 Annual report

Research and Markets (2011). Paladin Labs Inc. (PLB) - Financial and Strategic SWOT Analysis Review

 http://www.marketresearch.com/GlobalData-v3648/Paladin-Labs-PLB-Financial-Strategic-6262568/ 

Ryanair (2011).Ryanair 2011 Annual report  http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf

Conclusion

There are discrepancies encountered in conducting the valuation and risk of a private company. There arises these factors that if investigated can impact the process accordingly. The first research question that I suggest is investigating if the tax risk and equity market value exhibit a concave association, which is consistent with the optimal tax risk level from a valuation of equity standpoint. The second topic that can be researched upon is the changes facing the risk and value valuation service area for businesses and how they impact the practice. Finally, a study on how the Merger and Acquisitions revised standards are impacting business deals.

eferences

Chandra, U., & o, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. etrieved from http://search.proquest.com/docview/208923683?accountid=35812

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. eview of Accounting Studies, 12(1), 61-93. doi: http://dx.doi.org/10.1007/s11142-006-9022-z

Bernier, G., & idha, M.M. (2010). On the…...

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References

Chandra, U., & Ro, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. Retrieved from  http://search.proquest.com/docview/208923683?accountid=35812 

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. Review of Accounting Studies, 12(1), 61-93. doi:  http://dx.doi.org/10.1007/s11142-006-9022-z 

Bernier, G., & Ridha, M.M. (2010). On the economics of postassessments in insurance guaranty funds: A stakeholders' perspective. Journal of Risk and Insurance, 77(4), 857-892.

Accounting ethics are incredibly important because accountants are entrusted with handling money for individuals, businesses, and other organizations.  Unethical accountants can expose a business to financial risks and liabilities, even if their breaches of ethics do not amount to criminal behavior or involve intentional wrongdoing on the part of the accountant.  Huge financial scandals, such as Enron, could not occur without ethical breaches on the part of the accountants because the financial structure of large organizations requires at least passive participation in wrongdoing by people at the accountant level.  Accountant ethics are....

1. Evaluating the Impact of Simulated Scenarios on Sony Corporation's Key Metrics

This title clearly conveys the purpose of the essay, which is to assess the impact of simulated scenarios on Sony Corporation's key metrics. It is concise, specific, and informative.

2. The Role of Simulation in Assessing Sony Corporation's Business Performance

This title highlights the importance of simulation as a tool for evaluating business performance. It suggests that the essay will explore how Sony Corporation can use simulation to identify and address challenges and opportunities.

3. Simulating Different Scenarios to Optimize Sony Corporation's Performance

This title emphasizes the goal of the essay, which is....

Understanding financial risk can help individuals make better investment decisions by providing them with the knowledge and tools to assess and manage potential risks associated with different investment opportunities. By understanding the various types of financial risks, such as market risk, credit risk, liquidity risk, and interest rate risk, investors can make more informed decisions about their investment choices.

Additionally, understanding financial risk can help individuals to establish realistic investment goals and develop a well-diversified investment portfolio that can help mitigate risks and maximize returns. By considering the level of risk they are comfortable with and their investment time horizon, individuals....

Understanding Financial Risk: A Key to Informed Investment Decisions

Financial risk is an inherent aspect of investing. It refers to the possibility of losing some or all of the invested capital due to adverse market conditions, economic downturns, or other unforeseen events. Comprehending the nature and extent of financial risk is crucial for individuals to make informed and responsible investment decisions that align with their financial goals and risk tolerance.

Assessing Risk Tolerance

The first step in making sound investment decisions is to assess one's risk tolerance. This involves evaluating how comfortable an individual is with the potential for losses. Risk tolerance is....