Week 1 - Risk Metrics: Leverage and Reputational Risk

Question 1

gross profit - Lợi nhuận gộp hay lãi gộp trong tiếng Anh là Gross Profit. Lợi nhuận gộp là phần lợi nhuận mà công ty kiếm được sau khi trừ chi phí liên quan đến việc sản xuất và bán sản phẩm, hoặc chi phí liên quan đến việc cung cấp dịch vụ của công ty.

Answer 1

Usually refers to the difference between the sales price of a product and its marginal cost. Does not include indirect costs that should be allocated to the product to determine net profits.

Question 2

insolvent - vỡ nợ :o

Answer 2

• When a company does not have the cash to meet its immediate obligations to creditors.

Question 3

leverage -đòn bảy

Answer 3

Purchasing an asset, in particular an investment asset, partly or completely with borrowed money

Question 4

reputational risk

Answer 4

• Events that can damage a company’s brand, good-will, or future attractiveness to customers and potential customers.

Question 5

return on equity

Answer 5

• The investment return on an investor’s cash. For example, an investment that returns 5% would have a 5% “return on equity”
  if it were purchased for cash. The same investment, if purchased 50% with
  investor’s cash and 50% with money borrowed at 1% interest, would have a
  return on equity of 9%.

Question 6

unrecoverable (debt)

Answer 6

• Money loaned out that will never be repaid.