EZ-Food runs a fleet of lunch trucks that sell sandwiches, sodas, coffee, and snacks throughout the city. So far, EZ-Food has operated strictly on a cash basis, but no the firm is considering whether to offer weekly credit to its regular customers by allowing them to sign for their food Monday through Thursday and then pay their tabs on Friday. The manager of EZ-Food has developed the risk map shown next. Point A represents the manager's assessment of the impact and likelihood of a few credit customers refusing to pay their bills. Point B shows his assessment of the impact and likelihood of a significant number of customers making late payments. Point C indicates his assessment of a computer virus destroying the records of the amounts that customers owe.    Based on this risk map, which risk should he consider as the highest priority (A, B, or C)?

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
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EZ-Food runs a fleet of lunch trucks that sell sandwiches, sodas, coffee, and snacks throughout the city. So far, EZ-Food has operated strictly on a cash basis, but no the firm is considering whether to offer weekly credit to its regular customers by allowing them to sign for their food Monday through Thursday and then pay their tabs on Friday. The manager of EZ-Food has developed the risk map shown next. Point A represents the manager's assessment of the impact and likelihood of a few credit customers refusing to pay their bills. Point B shows his assessment of the impact and likelihood of a significant number of customers making late payments. Point C indicates his assessment of a computer virus destroying the records of the amounts that customers owe.

 

 Based on this risk map, which risk should he consider as the highest priority (A, B, or C)?

High
•A
Risk
Likelihood
Low
Low
Risk impact
High
Transcribed Image Text:High •A Risk Likelihood Low Low Risk impact High
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