Question

FIN3400

In the Concepts in Action video you watched this week, what do you think the president of the bagel company mean when they called the Atkins diet unsystematic risk (note that risk here refers to financial risk, not health risk)? Do you agree with them? Explain why or why not.

Answer 1

Answer:

The president of bagel organization allude the issue of Atkin's diet unsystematic risk which was fundamentally financial riskk regarding getting by in the market. The president implied that we as a whole were very much aware of the systematic risk which are really controllable risk, the risk that fundamentally emerge in the business because of business, or as it were, the chances of misfortune from different variables that can be decreased or maintained a strategic distance from inside and out. It very well may be controlled, for example, the risk of introducing new item. In any case, the unsystematic risk, and the information on it is likewise significant and it is the thing that they overlooked. The unsystematic risk resembles the economic situation, the downturn or recession in the market. They are not very much aware on the other expense may include to maintain the business. One of the cost referenced were generator costs of extra $100,000 because of electrical issue which they have not determined at all.

According to my opinion, it was not the right an ideal opportunity to begin another business in such a critical circumstance when endurance in the market was the serious issue. They would have been attempted to diminish the extra cost association in the business. They ought to have recognized those branches which was giving more profits. they ought to have additionally recognized those branches which were making misfortune and they would have distinguished why they were in misfortune to make them into profit. When internal issue diminishes and all investigation (for example market anaysis, demand, flexibly,supply, capex, opex) at that point just business ought to go for an extra portfolio.