JP Manufacturing LLC is a small organization that manufactures a variety of commodity products. These products, mostly made of plastic, are not proprietary in nature and the processes are standardized across the industry. The company has low cash reserves and liquid assets. Due to fluctuations in the number of customer contracts, the company has significant variability in cash flows. 

Based on this information, describe what an appropriate balance between risk retention and risk transfer would likely entail for JP Manufacturing LLC.

Answer rating: 100% (QA)

For JP Manufacturing LLC achieving an appropriate balance between risk retention and risk transfer is crucial given its small size low cash reserves and fluctuating cash flows Heres what such a balanc... View the full answer