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What is an economic risk for opening a bed and breakfast in Colorado?
Wiki User
∙ 10y ago
You have to consider a variety of factors. First off, you need to understand who your neighboring competitors are. If there are too many adjacent or close by bed and breakfasts then you should probably scrap up your idea and start over somewhere else. (New Mexico is a more viable option) Another risk you have to take into consideration is if you have enough revenue to support yourself for the first few years. Most businesses do not make any profit in their first years and any profit made is usally reabsorbed by the company. Now talking specifically about Colorado, one must cater to the needs of the people and in this case tourists. Most people going are of three categories, skiiers/snowboarders, people who are coming because of the new legalizations, and people just wanting to escape. There are a variety of more factors, and if you need more i suggest going to the colorado webpage and looking up taxes and stuff of that nature.
P.S. Shout out to the only M-train (Neymar is buns and so is your ultimate team)
Wiki User
∙ 10y ago
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What causes economic risk?
the jews
Explain what is meant by the economic risk of a nation Use a specific country as an example?
The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
What is Risk adjusted return on economic capital?
RAROC is a risk based profitability measurement for analyzing the risk-adjusted financial performance of the company and for providing a consistent view of the profitability across businesses. RAROC is usually used in banking parlance where companies have to handle the risk of losses.In business enterprises, risk is traded off against benefits. RAROC is defined as the ratio of risk adjusted return to economic capital. The economic capital is the amount of money which is required to secure the survival of the organization in a worst case scenario; it is a buffer against expected shocks in the market values. Economic capital is a function of credit risk, market risk and operational risk and is often calculated by VaR (Value at Risk). This use of capital based on risk improves the capital allocation across the different functional areas of banks, insurance companies or any other business in which capital is placed at risk for an expected return above the risk-free rate.Formula:RAROC = Expected Return / Economic Capital orRAROC = Expected Return / Value at Risk
What risk is involved in having economic freedom?
Basically, a risk in economic freedom is having to face and accept the concequenses of their decisions. For example, if an entrepreneur starts a business that fails, the government usually won't help out.
The individual who brings together economic resources and assumes the risk in a capitalist economy is called the............?
Entrepreneur.
What is the difference between transaction risk and economic risk?
Transaction is bank risk
Financial risk of running a business?
financail risk of operating and opening a business
What causes a economic risk?
the jews
What causes economic risk?
the jews
Is entrepreneurship a economic and social goal?
Absolutely. If there are no risk takers with ideas then there will be no economic growth and job creation.
Is risk of loss through an economic depression insurable?
no its uninsurable
Explain what is meant by the economic risk of a nation Use a specific country as an example?
The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
What is moral risk?
Moral risk refers to the potential for individuals to alter their behavior based on the knowledge that they are protected from the consequences of their actions. This can lead them to take greater risks or act irresponsibly due to the belief that they will not bear the full burden of negative outcomes.
What is Risk adjusted return on economic capital?
RAROC is a risk based profitability measurement for analyzing the risk-adjusted financial performance of the company and for providing a consistent view of the profitability across businesses. RAROC is usually used in banking parlance where companies have to handle the risk of losses.In business enterprises, risk is traded off against benefits. RAROC is defined as the ratio of risk adjusted return to economic capital. The economic capital is the amount of money which is required to secure the survival of the organization in a worst case scenario; it is a buffer against expected shocks in the market values. Economic capital is a function of credit risk, market risk and operational risk and is often calculated by VaR (Value at Risk). This use of capital based on risk improves the capital allocation across the different functional areas of banks, insurance companies or any other business in which capital is placed at risk for an expected return above the risk-free rate.Formula:RAROC = Expected Return / Economic Capital orRAROC = Expected Return / Value at Risk
What risk is involved in having economic freedom?
Basically, a risk in economic freedom is having to face and accept the concequenses of their decisions. For example, if an entrepreneur starts a business that fails, the government usually won't help out.
Which of the following is an example of a risk behavior?
Chewing tobacco
Is opening a franchise a good business opportunity?
Opening a franchise can be a good business opportunity if there is a need for that service in the area you are planning on developing. Opening any business in this economy is a significant risk so do your research!
