I need one replays for each discussions and I'll upload 2 discussions each one must be 125 words I must have 250 words from you , every discussion 150 words and it must have (citation and reference ) without citation and reference it will not be acceptable .
Discussion One:According to Ali Murad Syed, et. al., 2020, Financial risk management (FRM) can be described as the act of identifying and controlling the financial risks that provide the greatest danger to the firm. Companies manage their financial risk in a variety of ways. Over the last decade, financial risk management has been altered, and the concepts and models of financial risk management have changed dramatically in the context of the current globalized scenario. Financial risk is the danger of a corporation failing to meet its debt obligations on schedule. While an organization's business risk refers to the danger that the company will not be able to produce profits from its commercial operations and may end up losing money.
1. Because the corporation obtained 100 percent of the funding requirement through debt, the financial risk of the paid back is larger, and if the activities do not create enough cash, it will be unable to return the debt. Therefore, financial risk has risen.
2. . In this case, an outsourcing firm has started a new printing operation. Furthermore, the firm spent cash for the asset acquisition, which means that the firm's business risk has shifted. Ali Murad Syed 2020, Operating expenditures and expenses are related to company risk. This also affects assets when a firm goes into new business operations or expands its business, which affects the firm's operational profit.
3. It appears that this corporation's general business risk has altered since the firm was a specialty retail shop, and now the company intends to merge golf course equipment and other golf-related items. Therefore, the operating expenditures and expenses are related to company risk. This also affects assets when a firm goes into new business operations or expands its business, which affects the firm's operational profit.
Reference:
Recent trends in business financial risk – A bibliometric analysis
2021Ali Murad Syed, Hana Saeed Bawazir10.1080/23322039.2021.1913877Cogent Economics & Finance
Discussiontwo:Which of the following sources of new earnings volatility demonstrates the effect of business versus financial risk (discuss the logic of your decisions):
1-Amos Gooding Real Estate Company recently built a new office building and borrowed 100% of the money needed to finance the project.
Banking business can be a good way to open your business. But you need to analyze the risks and the risks very carefully. A bank report is a financial contract between the customer in which the first receives an amount that must be delivered to the bank within a specified period, plus the agreed interest. Philip E. Strahan in Borrower Risk and the Price and Nonprice Terms of Bank Loans''Businesses have a hard time raising capital when their prospects are hard to judge by outsiders. This problem of asymmetric information creates a dilemma for potential creditors''(Strahan). According to the expert, it is not feasible to build a company solely from bank money.
2-Clearing House Outsourcing has historically paid a printer to prepare all your paper documents. However, last year the company acquired its own printer (paying cash).
Clearing House Outsourcing must consider what would be the profitability gained by applying or valuing its own press, during the duration of the company or service. So, this profitability added to the value of the financing installments for the same period.
3-Smithers Enterprises has been a specialty retail store selling outdoor camping equipment. The company recently decided to buy a golf course.
It is important to apply investments in different areas. Miljan Lekovic in his article INVESTMENT DIVERSIFICATION AS A STRATEGY TO REDUCE INVESTMENT says that ´´ Investment diversification is a widely accepted investment strategy aimed at reducing investment uncertainty while keeping the expected return on investment unchanged.´´ (Lekovic , 2018). You need to diversify your investments and where to put your capital in one place. Investment diversification is the strategy of allocating resources to products with differentiated characteristics, so that the eventual negative performance of a given investment does not represent very large losses in total equity, as there will be other assets in the portfolio to balance risk and return. In other words, the diversification strategy is a way to invest more safely, increasing profitability.
Lekovic, Miljan.Ekonomski Horizonti; Kragujevac.INVESTMENT DIVERSIFICATION AS A STRATEGY FOR REDUCING INVESTMENT RISK Vol. 20, Ed. 2, (May-Aug 2018)