Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 1 - Managerial Accounting: An Overview - Questions - Page 19: 1-9

Answer

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Work Step by Step

The telephone service provider Verizon faces the risk of computer hackers, severe weather, and employees accessing unauthorized information. Verizon deals with the risk of computer hackers by continuously updating security software and using the most advanced firewalls to protect data. Verizon deals with the risk of severe weather by designating an entire team of employees to respond to severe weather disasters and maintain equipment such as radio towers. Verizon deals with the risk of employees accessing unauthorized information by placing password protected barriers to certain areas and programs. Another company faces risks is Amazon, the giant e-commerce retailer. Amazon faces the risks of large competition, uncertainty in profit generation and declining growth of revenues. Amazon faces the risk of large competition by diversification of activities. It faces the risk of uncertainty in profit generation by increasing revenue through competitive pricing. The risk of decline in growth of revenues is faced by Amazon through expansion of business and provision of unique services.
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