250 WordsAPA formatted references You are a senior financial consultant for 123 Corporation. Your CEO has asked that you train incoming consultants on financial management and risks. You develop a...

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250 WordsAPA formatted references

You are a senior financial consultant for 123 Corporation. Your CEO has asked that you train incoming consultants on financial management and risks.


You develop a lesson plan comparing financial risks of a popular retail clothing company and a utility company to help the trainees better understand risk management.



  • Discuss the differences in risks associated with a retail clothing company versus a utility company.

  • Which company has the potential for higher risk?

  • Identify at least 3 sources of risk.

  • Compare stability and variability in earnings, as well as the optimal debt ratio between the two—which company has the highest, and which has the lowest?

  • Explain your rationale for each of your answers.






















Grading Criteria




40%



Discuss the differences in risks associated with a retail clothing company versus a utility company. 15%


Which company has the potential for higher risk? 5%


Identify at least three (3) sources of risk. 10%


Explain each of your answers. 10%




20%



Compare stability and variability in earnings between the two companies.15%


Compare the optimal debt ratio between the two companies; which has the highest, and which has the lowest?15%


Explain each of your answers.10%




20%



Post a response to the Discussion Board and comment on at least two other postings




Answered Same DayDec 23, 2021

Answer To: 250 WordsAPA formatted references You are a senior financial consultant for 123 Corporation. Your...

Robert answered on Dec 23 2021
122 Votes
The risk management in today’s business environment has become an integral part of any
business be
it in any industry. When it comes to apparel or utility industry, the risk varies
from industry to industry. They have specific risks and some of them compliment to each
other. The differences in the risk between them are as follows: -
Retail Clothing Company Utility Company
The major risks in a retail clothing company
are the volume of stock the company possess.
As we know, a retail clothing company has
huge amount of inventory, hence inventory
management is an essential part. If the
inventory keeps lying with the company for a
prolonged period, the cash cycle is blocked
and the company faces cash crunch and
eventually liquidity problems.
A Utility company does not possess such
inventory risks as they have a little inventory
in their books. Hence, the point of inventory...
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