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BUS 210 Introduction To Accounting

tag 0 Download 2 Pages / 453 Words tag 03-06-2021
  • Course Code: BUS210
  • University: Centennial College
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  • Country: Canada

Question

1) Financial losses due to legal provision: According to Nova Chemical investor information (Patty Masry, 2018), by the end of September 2018, Nova chemical generated a profit loss around $250 Million dollars compared to September 2017, which was about $7 Million dollars due to the legal provision and less sells compared to the last years. 

So this risk falls in Financial and strategic risk category which possess high impact on revenue or net profit. It should be responded in effective manner so company can achieve the sales target and compensate the previous losses. 

2) Fluctuation in crude oil: Though, there is no record for financial or Operation losses due to fluctuation oil in the past, still it can have a drastic change in operation like increase in price of raw mate; ial. There are also chances of getting costly raw material as the crude oil, gas, and some chemicals are base raw materials to make final products at Nova Chemicals. 

3) Extreme Bad weather condition, duties legislation and taxes affects the supply chain: According to news (Smyrlis., 2001), Nova chemical delivers more than 10 billion pounds of products every year by ship, rail or truck and online piping. So definitely chances of delay in logistic and supply chain system to deliver the products if bad weather comes. 
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