Wonderful Widgets Inc. is a manufacturing firm in Buffalo, N…

Wonderful Widgets Inc. is a manufacturing firm in Buffalo, NY that manufacturers widgets. In February, a major snow storm struck the Buffalo area, causing significant wind and snow accumulation. Wonderful Widgets manufacturing plant was not damaged by the snow storm in any way. However, for three days after the snow storm hit, the local utility provider Buffalo Power & Light was unable to restore electricity to the area of Buffalo where the firm’s manufacturing plant is located. As a result, Wonderful Widgets Inc. could not operate for three days until the electricity in the area was restored; which is used to power all of the firm’s machinery, equipment, and heating for the building.  What type of risk does the above scenario fall under?

The senior management of the firm must constantly make decis…

The senior management of the firm must constantly make decisions on the firm’s strategy and long-term vision in order to survive and continue to grow the business.  What type of risk is the following?: When the senior management within the firm makes a business decision > and then the resulting public and/or market reaction (either positive or negative) to those business decisions. 

Due to the rising price of a barrel of crude oil, based on t…

Due to the rising price of a barrel of crude oil, based on the Global Crude Oil Index (GCX), Speedway Stores must increase the price of a gallon of gasoline by 10% at all of its gas stations across the country. What category of risk does this represent for Speedway Stores? 

East Side Fitness is a fitness center in Tampa, FL. It is co…

East Side Fitness is a fitness center in Tampa, FL. It is contemplating whether to acquire a yoga studio directly across the street from its gym.  The owners believe that the yoga studio will serve as a complimentary business. In turn, East Side will be able to increase the membership fees for current members by offering yoga services, as well as grow the overall membership by offering both fitness center services and yoga services.  Which one of the following quadrants of risk will be most influenced by this decision?