Part 1: Respond to Discussion below:
Part 2: Respond to classmate below:
“Right now in the United States, we have trade frictions with China and the inability of Congress to pass a budget. Investors worry that the trade war between the United States and China could start to pinch corporate earnings and economic activity more than it has to date. A financial manager has to learn about the risks of investing and do their homework on individual investments, this will allow them to make decisions that will help them meet their financial goals.
Businesses face all kinds of risks, some of which can cause serious loss of profits or even bankruptcy. Everyone knows that a successful business needs a comprehensive, well-thought-out business plan. But it’s also a fact of life that things change. One of the biggest risks is strategic risk. It’s the risk that your company’s strategy becomes less effective and your company struggles to reach its goals as a result. It could be due to technological changes, a powerful new competitor entering the market, shifts in customer demand, spikes in the costs of raw materials, or any number of other large-scale changes.”
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