Suppose that you have the opportunity to invest $50,000 in a new restaurant in
South Bend. (FYI: Dr. HG Parsa of Ohio State University has done a study that
shows that 59% of restaurants fail within the first three years!).
a) Given the following data, what is your opportunity cost here? Explain.
Asset Annual Return
5 year Government Bond 1.25%
DJIA (Stocks) 7%
"Junk" Bonds (CCC or below) 13%
Note: CCC bonds have an average default rate of 27%

b) Now, suppose that as a part owner, you are allowed to eat for free as
often as you like. How does this change your calculation from (a)?

In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (

Do a swot analysis for the business idea you chose in question 2 above. describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.