Q. From the below Compare and contrast the risks that exist in this case study against the risks that relate to investing in property.

Harry Hausmann approaches NATWHICHPAC BANK to arrange finance. Harry explains to you that he wants to expand his small pyrotechnics business to a larger-scale operation. He has just successfully negotiated a long-term contract with the local 'WACKER SPEEDWAY' to exclusively supply and create the fireworks displays for all of their special events, which are held on three days and evenings of each fortnight.

Harry has an unencumbered property that he wishes to use as collateral for a loan. The property is a large modern ultimate beachfront home on a 400m square block at Kirra Beach on the Gold Coast, abutting the beachfront sands.

Under the terms of the contract with the speedway's management, Harry's company will be paid only of the agreed fee for an event, if the fireworks display is cancelled by management up to 48 hours before the scheduled event time, (which would occur upon the Bureau of Meteorology predicting a likelihood of moderate to heavy rain, for any planned date). If cancelled within 48 hours of the event Harry's company is to be paid the full negotiated fee.

While Harry's company has some other occasional or semi-regular clients that he maintains, the speedway represents a large step up for his business and his scale of operations, which is why the loan is very important to him. He needs to put on an extra 5 skilled workers to assist in setting up and letting off the fireworks displays for each night's events. The set up takes them roughly two days' work at the venue, once the pyrotechnics materials arrive at the site. Harry imports his fireworks from China and will need to order in larger amounts to fulfil the contract.

At least three of his workers are to be positioned in the interior of the speedway field while some of the races are still on, before the fireworks begin. They are required by the internal safety policies of the speedway to wear protective headgear (which Harry must provide), while they are inside the speedway field.

Harry proposes that the increased revenue from this contract will easily cover the repayments on a loan, once the new contract is up and running, provided the weather holds good for roughly half of each fortnight's planned events. Harry also says if it will help his application for finance, he is prepared to have special uniforms made for all his workers, highlighting the NATWHICHPAC logo prominently as esteemed sponsors.

Your manager, Ezekiel Slater, is an unabashed opportunist whose ethical position relates more to profitability than morality. He sees the proposed sponsorship arrangement as a profile-building exercise for himself if he can match financial strategy with marketing strategy. Keen to rise quickly through the ranks through self-promotion rather than hard work, Ezekiel instructs you to give this matter your full attention.