On one fortunate day, you won a lottery of RS 500,000. Now you want to start your own business and after the discussion with your family and friends you come up with the idea to open a “Bakery” in defence phase 8 Karachi. But due to the current economic condition, the amount is not sufficient to start the baking business. You decide to go to an investment bank to finance your business idea. Unfortunately, the investment bank does not like your idea of opening the bakery and give you 2 other options for which the bank can provide you Rs 1 million. Option 1, invest in a Hardware store, and option 2, invest in a petrol station. The bank asked you to analyze the environment and provide answers to the following questions to get the investment of Rs 1 million What sectors directly affect both options (petrol station, Hardware store ) what sectors indirectly affect both options (petrol station, Hardware store) Using the environmental uncertainty framework both options come under which quadrants? (low uncertainty, low-moderate uncertainty, moderate-high uncertainty, high uncertainty). Which option is best for getting Rs 1 million from the bank and why?
On one fortunate day, you won a lottery of RS 500,000. Now you want to start your own business and after the discussion with your family and friends you come up with the idea to open a “Bakery” in defence phase 8 Karachi. But due to the current economic condition, the amount is not sufficient to start the baking business. You decide to go to an investment bank to finance your business idea. Unfortunately, the investment bank does not like your idea of opening the bakery and give you 2 other options for which the bank can provide you Rs 1 million. Option 1, invest in a Hardware store, and option 2, invest in a petrol station. The bank asked you to analyze the environment and provide answers to the following questions to get the investment of Rs 1 million What sectors directly affect both options (petrol station, Hardware store ) what sectors indirectly affect both options (petrol station, Hardware store) Using the environmental uncertainty framework both options come under which quadrants? (low uncertainty, low-moderate uncertainty, moderate-high uncertainty, high uncertainty). Which option is best for getting Rs 1 million from the bank and why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On one fortunate day, you won a lottery of RS 500,000. Now you want to start your own business and after the discussion with your family and friends you come up with the idea to open a “Bakery” in defence phase 8 Karachi. But due to the current economic condition, the amount is not sufficient to start the baking business. You decide to go to an investment bank to finance your business idea. Unfortunately, the investment bank does not like your idea of opening the bakery and give you 2 other options for which the bank can provide you Rs 1 million. Option 1, invest in a Hardware store, and option 2, invest in a petrol station. The bank asked you to analyze the environment and provide answers to the following questions to get the investment of Rs 1 million
- What sectors directly affect both options (petrol station, Hardware store )
- what sectors indirectly affect both options (petrol station, Hardware store)
- Using the environmental uncertainty framework both options come under which quadrants? (low uncertainty, low-moderate uncertainty, moderate-high uncertainty, high uncertainty).
Which option is best for getting Rs 1 million from the bank and why?
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