Choose the correct option: a. An optimist sees an opportunity in every calamity; a pessimist sees calamity in every opportunity. b. Pessimists protect a company against risks. c. A pessimist may make an ambitious plan more difficult but I’d take that over an optimist who could lead me to bankruptcy

John is CFO at a venture-backed tech start-up with revenues of $20 million andapproximately 80 employees. He has worked at the company for several years, andnow reports to Ralph, the company's newly hired CEO.The company had been doing really well, but recently big customers have been placingfewer orders and Ralph is feeling pressure to show growth. This pressure is amplifiedbecause the company is venture-backed, and the investors expect results. While thecompany did well in the first round of funding, if they don't perform now, they may havetrouble with gaining sufficient funding in the second round, which could mean the endof the company.All of this was on John's mind when Ralph came to him about recording a major orderthat was still under negotiation. The deal had not gone through, although both partiesexpected to complete the deal in the next week. With the current quarter ending in thenext few days, including this order would give a significant boost to the company'sfinancial…

You have just been hired as the new risk manager of We Don't Change Manufacturing (WDCM).  As the name suggests, they have been traditionally doing the same thing for the past 10 years.  One of your first initiatives is to introduce the concept of enterprise risk management (ERM) to your boss, the treasurer.  Identify three areas in which ERM and traditional risk management (TRM) differ. For example, one of the areas of TRM is that it” manages downsides risks” and one area of ERM is that it “manages both upside and downside risks”.

After discussion, the decision is to choose to operate as a C-Corporation. As a part of this organization, you all decide you want to set up an education reimbursement program. You have decided to categorize this under two groups: 1) continuing education and 2) reimbursement for tuition in pursuit towards a master’s degree. Provide discussion of the difference between how each will be taxed to the corporation and the employees under each case.

Olivia, the new CEO of Mountain West Hospital, is taking time to meet local communityleaders and show them that she wants to be a partner in making the community a greatplace to live. One of her key initiatives is to examine the general health of the communityand learn how her organization can support the local health department and similar organizations. She knows that the Affordable Care Act requires nonprofit hospitals tocomplete a community health needs assessment, but Mountain West is part of a privatelyowned corporation, so it is not subject to that requirement. Clark has scheduled a meetingwith her leadership team to discuss the hospital’s role in the local population’s health.Discussion Questions1. What steps should Clark take as she begins her efforts to improve the health of thecommunity?

True or false 1. The possibility of a business entity’s computer system being hacked and disrupting its daily business activities is an example of enterprise risk.  2. In the same situation, an individual with high subjective risk often has higher risk perception, so he will estimate a bigger chance of loss relative to an individual with low subjective risk.  3. Objective risk refers to the severity aspect of loss meanwhile subjective risk refers to the frequency aspect of loss 4. Having 10,000 exposure units as compared to 1,000,000 exposure units will enable the future loss experience can be predicted more accurately

Which of these is the BEST example of negative leverage? Kevin used borrowed money to extend his buying power, increasing his profits. Kim bought an office building with ten-year leases, so as time goes on, the buying power of her profits will decline. Konstantin needed cash to move on an investment opportunity, but his money was all tied up in real estate. Krista took out a loan to purchase an investment property, but the cost of her loan was more than the income on the property.