Risk taker in terms of cost of capital and investments

Assignment Help Operation Management

Reference no: EM132136326

Henrietta was a risk taker while her son Freidrich wasn’t. What challenges or disadvantages would a company have that was a risk taker in terms of cost of capital and investments? What about the challenges or disadvantages under Freidrich? Freidrich took over the family business and although he truly believed in the superiority of his family chocolates, he was more concerned about profit margins and reducing risk. A few years after his mother's retirement, Freidrich announced that Wulfurt Family Chocolates was going public. Freidrich preferred to go public so he could pass on the risk to shareholders as well as raise capital to open up a factory.Henrietta, on the other hand, was a risk taker. When dealing with the expansion of Wulfurt Family Chocolates, Heirich often advised Henrietta to avoid certain projects because of the high required rate of return. Henrietta didn't mind the risk and sometimes authorized investments that had a 35% required rate of return. Luckily for her, the rapid company growth helped her achieve her returns.

Reference no: EM132136326

Questions Cloud

Create two virtual machines each running : Create two Virtual machines each running a different but the latest distribution of Linux e.g. Ubuntu Server and CentOS. Each of these VM's is to offer services

What are the tax consequences of katie blood donations : Katie donates blood to a hospital on a regular basis (3 times a week). For each donation, she receives $175. She pays $20 in bus fare for each donation.

Motivations to increase fundraising effectiveness : What is your opinion on why so much of the money given to charity comes from people who are not wealthy-what is their motivation?

Identify and discuss your projects greatest challenges : Identify and discuss your project's greatest challenges (at least three) and provide a recommendation for addressing each of the challenges.

Risk taker in terms of cost of capital and investments : What challenges or disadvantages would a company have that was a risk taker in terms of cost of capital and investments?

Conduct fundraising activities : Show examples of organizations that are more focused on simply bringing in money to the organization and those that are more focused on building relationships

How would the fraud impact the financial statements : What are the red ?ags present that suggest the possibility of fraud? Are there conditions present suggested by the fraud triangle that may facilitate fraud?

We were discussing the concept of systems thinking : We were discussing the concept of Systems thinking and how it is essentially learning about oneself in interaction with the surrounding world

What do you think of the leadership and management skills : What do you think of the leadership and management skills of current CEOs overall (your general assessment)?

User Account

All Pages