Economic risk

You graduated 2 years ago, and you plan to purchase a new car. For three different models you have evaluated the initial cost and estimated annual costs for fuel and maintenance. You also evaluated the styling of each car in your role as a young engineering professional.

List some additional factors (tangible and in tangible) that might be used in your version of the weighted attribute method .

In a leveraged buyout of one company by another, the purchasing company usually obtains borrowed money and inserts as little of its own equity funds as possible into the purchase. Explain some circumstances under which such a buyout may put the purchasing company at economic risk.


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