Answered: Describes the impact of risk decisions…

Business

Management

Describes the impact of risk decisions and rates of return on the organization.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Describes the impact of risk decisions and rates of return on the organization.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

Step 1

Risk decisions are critical and may either turn favorable or unfavorable to the organization.

Rates of return imply the amount gained or lost on organizational investments over a certain time period.

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