Imagine you are a small business owner. Determine the financial ratios that are important to the business. Compare your ratios with those that are important to a manager of a larger corporation. Explain the advantages and disadvantages of debt financing and why an organization would choose to issue stocks rather than bonds to generate funds. Discuss how financial returns are related to risk. Describe the concept of beta and how it is used. Contrast systematic and unsystematic risk. Imagine your manufacturing corporation has just won a patent lawsuit. After attorney and other fees, your corporation will have about $1 million. Explain how you plan to invest the money in order to diversify the risk and receive a good return.

Answer rating: 100% (QA)

For small bussiness you will have to make sure that amount that you are investing must get back as early as possible so you will use inventory turnove... View the full answer