Read the following scenario and answer the questions that follow: Goldie PLC is a global company incorporated in the UK, that extracts valuable minerals from the earth. Mining is a risky business with a death toll averaging 100 deaths per
Read the following scenario and answer the questions that follow:
Goldie PLC is a global company incorporated in the UK, that extracts valuable minerals from the earth. Mining is a risky business with a death toll averaging 100 deaths per annum in the UK. Goldie has recently had a coal mine collapse killing two men and trapping four others for three days. The accident made the national news and made Goldie well known. Goldie is financed by equity and has a large cash balance and no debt. It has come to the attention of the board that the future price of coal is forecast to fall, as renewable energy sources become more reliable.
Required:
For each of the following risks for Goldie PLC, identify the level/severity of the risk and explain your classification.
- Financial risk
- Project risk
- Reputation risk
- Expert Answer
Financial risk The levelseverity of financial risk for Goldie PLC can be classified as moderate to high While the company has a large cash balance and View the full answer
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
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