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- Which of the following types of financial risk can be effectively managed by holding a lot of short-term deposits on the balance sheet that are used to finance long-term assets of the business such as mortgage loans/credits to allow the business to make profits? Select one: a. Interest Rate Risk b. Liquidity Risk c. Market Risk d. Foreign Exchange RiskDiscuss the benefits of managing financial risks in a company?How can a company expand itself out of business, and how can a finance management prevent this from happening?
- Explain why very small to medium-size enterprises (SMEs) might face problems in obtaining appropriate sources of finance. In your answer pay particular attention to problems and issues associated with: Uncertainty concerning the business; Assets available to offer as collateral or security; and Potential sources of finance for very new SMEs excluding sources from capital markets. I need a detailed response to this question.As a corporate financial manager, what steps could you take to protect your company from a liquidity crisis?What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?
- How do Fintech changes the trajectory of financial market? in terms of providing accessibility and convinience to their customer?What are the basic arguments for increasing capital requirements at large commercial banks? In what ways will depositors, stockholders, and society in general benefit? How might each group be disadvantaged? As commercial banks enter new lines of business such as brokerage, how much additional capital should be required? Should these new lines of business be insured by the FDIC? Why or why not? Give examples from today’s financial marketplace.Should companies preserve their financial flexibility in times of financial crises?
- How does the financial market facilitate corporate finance and investment management needed?Financial markets: efficient and other. How are financial firms able to make profits? Under what circumstances are their profits limited?Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?