Smart Home Designs Inc. is a company that produces high-end…

Smart Home Designs Inc. is a company that produces high-end “smart home products”. One afternoon, a fire breaks out in their production facility, destroying a critical piece of machinery that produces most of the “smart product’s” circuit boards. Smart Home Designs contacts the manufacturer of the machine, and arranges for expedited shipping of a replacement machine which costs a whopping $10,000. Despite this, the earliest the machine can arrive is in seven days. As a result, Smart Home Designs is unable to manufacture or sell any smart home products for at least one week. The underlined portion of the above scenario is example of what? 

The Cool Corporation is a medium sized business that has an…

The Cool Corporation is a medium sized business that has an annual revenue of $25 million. The Cool Corporation faces a loss exposure = the probability of this loss exposure occurring is 0.001%. However, if the loss exposure does occur (although very unlikely) it will result in $25 million in damages. Which risk management option should the Risk Manager of The Cool Corporation choose for this loss exposure?

In 2022, the United States saw an inflation rate of the US D…

In 2022, the United States saw an inflation rate of the US Dollar ranging from 7% – 9% throughout the year. During this time, the consumer price index (CPI) and overall cost of living for most Americans increased substantially. Additionally, the increase in inflation of the US Dollar affected the profitability of most businesses operating in the United States.  Based on what is written above, what classification of risk best describes the inflation rate of the US Dollar?