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Company Activity Financial Risk

Author

Listed:
  • Caruntu Genu Alexandru

    (Constantin Brâncuşi University of Târgu Jiu)

  • Holt Gheorghe

    (Constantin Brâncuşi University of Târgu Jiu)

Abstract

In economic and financial activity, risk is an inherent financial decisions, encountered in daily agenda of managers of companies. Unexpected changes in the price of a product development not only affect the financial results of a company, but can cause even bankruptcy. In fact, the nature of financial decisions involve uncertainty. Financial decisions are made based on cash flows under future contracts, which are par excellence incerte.Activitatea an enterprise that holds any weight in the industry is subject to risks, since it can not predict with certainty different components of its outcome (cost, quantity, price) and operating cycle (purchase, processing, sales).

Suggested Citation

  • Caruntu Genu Alexandru & Holt Gheorghe, 2012. "Company Activity Financial Risk," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 104-107, December.
    • Handle: RePEc:cbu:jrnlec:y:2012:v:4ii:p:104-107
    as

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