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A Major Industrial And Commercial Company

Satisfactory Essays

Name: Bahi Beshara
D#40157487
Devry University
Finance 516
Mini Case

Select a major industrial or commercial company based in the United States, and listed on one of the major Stock Exchange in the United States. Each student should select a different company. Avoid selecting an insurance company or a bank, as the financial ratios for these financial businesses are different. Write a 7 – 8 page double spaced paper answering and demonstrating with calculations and financial data the following questions:
1. What is the name of the company? What is the industry sector?
I selected Apple, Inc. (AAPL). Apple belongs to the electronic equipment industry sector.
2. What are the operating risks of the company?
Basically operational risk means the possibility of incurring a loss due to inadequate or unsuccessful processes, employees and systems or external event. Apple has been emphasizing the importance of capital risk management focusing on continuity of operations, alongside with planning ahead for the future and the increasing reliance over cloud computing to enhance the resilience factor of systems.
On the other hand, the company still faces several operational risks that could affect the production process, sales and ultimately the net income generated which will lead to a drop in Apple stock prices and hurt the investors on the long run.
1. Competition is one of the major risks that face Apple and could potentially affect the company’s performance severely if Apple

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