1-1 Jo

REply to students reponse below on risk and profit in 200 words

 Risks/Profit

Don't use plagiarized sources. Get Your Custom Essay on
1-1 Jo
Just from $13/Page
Order Essay

There are numerous risks a company must undertake in order to succeed in today’s economy and uncertainty, or risk, is always going to be present in daily business operations (Keat, Young, Erfle & Banerjee, 2018).  For starters, every business needs to take a strategic risk by carrying out a detailed business plan and making adaptations based on the economy and demand of products (Blackman, 2014).  Failure to plan properly or be willing to make major changes to the company when necessary may mean the difference between bankruptcy or becoming a multi-billion-dollar business.  Compliance risk is another problem the company may face when ensuring that the firm is always complying will all necessary laws and regulations (Blackman, 2014).  It is very important that companies stay up to date with the changing laws and be aware of the additional regulations associated with any extended product line especially when dealing with international laws.  There is also the issue of operational risks such as when there is an unexpected equipment failure or a natural disaster strikes when not prepared (Blackman, 2014).  These risks may involve a severe loss in revenue and customer reputation.  Financial risk from costs, lost revenue, excess debt, or customers unwilling to pay could result in significant financial loss (Blackman, 2014).  Lastly, there is always the risk of a damaged reputation within an organization, which could significantly affect the company’s revenue by causing employees to leave, suppliers to become less favorable, and sponsors to decide not to be associated with the business (Blackman, 2014).  These are just a few of the common risks that companies must take in order to successfully grow their business.
A manager may contribute to the profit maximization goal of a firm by utilizing the profit maximization hypothesis to determine the optimal decision to make in managerial economics that could bring the company closer to their ultimate goal (Keat, Young, Erfle & Banerjee, 2018).  For starters, if the company’s goal is to increase profit then the firm needs to price its products at a level where the revenue earned on the last unit of a sold product is equal to the additional cost of making the last unit so the firm’s marginal revenue and marginal cost are equal to the optimal price (Keat, Young, Erfle & Banerjee, 2018).  The manager may also decide to move resources to different areas of the company that do not directly result in profit maximization but closer to the goal in the “long-run.”  The key is to maximize revenue while minimizing costs by analyzing the changes in revenue and changes in costs for every additional unit sold.

Keat, P. G., Young, P. K. Y., Erfle, S. E., & Banerjee, S.  (2018).  Managerial Economics (7th ed.).  Uttar Pradesh, India: Pearson India Education Services.
Blackman, A.  (2014).  The Main Types of Business Risk.  Retrieved from https://business.tutsplus.com/tutorials/the-main-types-of-busi

Achiever Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code RESEARCH