Business Finance Chapter 6 Risk and Its Measurements 6.1 Risk

Risk - Business Finance - ثاني ثانوي

PART 1

Chapter 1 An Introduction to Basic Finance

An Introduction to Basic Finance

1.1 The Divisions of Finance

1.2 Key Financial Concepts

1.3 Finance and Other Business Disciplines

Summary

Chapter 2 The Role of Financial Markets and Financial Intermediaries

The Role of Financial Markets and Financial Intermediaries

2.1 Financial Markets

2.2 Financial Intermediaries

2.3 Regulation of Financial Institutions

Summary

Chapter 3 Analysis of Financial Statements

Analysis of Financial Statements

3.1 General Accounting Principles

3.2 The Balance Sheet

3.3 The Income Statement

3.4 Statement of Cash Flows

3.5 Financial Statement Analysis

3.6 Liquidity Ratios

3.7 Activity Ratios

3.8 Profitability Ratios

3.9 Leverage Ratios

3.10 Coverage Ratios

3.11 Limitations of Accounting Data

Summary

PART 2

Chapter 4 An Introduction to Financial Markets

An Introduction to Financial Markets

4.1 Markets

4.2 The Mechanics of Investing in Securities

4.3 Special Security Purchases

4.4 Measures of Securities Prices

4.5 Foreign Securities

4.6 Competition in the Securities Markets

Summary

Chapter 5 Opportunity Costs and the Time Value of Money

Opportunity Costs and the Time Value of Money

5.1 Opportunity Costs

5.2 The Future Value of a Single Amount

5.3 The Future Value of a Series of Amounts (Annuity)

5.4 The Present Value of a Single Amount

5.5 The Present Value of a Series of Amounts (Annuity)

5.6 Other Time Value of Money Situations

Summary

Chapter 6 Risk and Its Measurements

Risk and Its Measurements

6.1 Risk

6.2 The Return on an Investment

6.3 The Sources of Risk

6.4 Risk Measurements

6.5 Risk Management Strategies

Summary

Chapter 7 Stock and Bonds

Stock and Bonds

7.1 Sources of Funding

7.2 Common Stock

7.3 Dividend Policy

7.4 Preferred Stock

7.5 Bonds

7.6 Retiring Debt

Summary

Chapter 8 Cost of Capital

Cost of Capital

8.1 Cost of Capital Components

8.2 A Weighted-Average Cost of Capital

8.3 The Optimal Capital Structure

8.4 Other Capital Structure Issues

Summary

Glossary

6.1 Risk

Risk

6.1a Types of Risk

Risk

Economic risk

Pure risk

Speculative risk

6.1 Risk

Why Do Individuals and Businesses Take Risks?

What risks might a business encounter?

6.1 Risk

Risks Sources or Causes

Controllable and Uncontrollable Risk

6.1b Uncontrollable Business Risks

Natural risks

Human risks

Controllable risks

Uncontrollable risks

6.1 Risk

FIGURE 6.1 Uncontrollable Business Risks

Economic Risk

Geographic Risks

6.1 Risk

What type of geographic risk might a business be subject to?

Cultural Risk

6.1 Risk

Political-Legal Risk

6.1c Controllable Business Risks

6.1 Risk

A pure risk is a situation with an opportunity for a future financial gain.

A risk is a situation with the possibility of either financial loss or gain.

Government regulations of business can create a risk.