December 2017 Q4a. Sweet Cicely

Part (a) has two parts:

1 Why risk and uncertainty have to be considered (briefly high returns usually imply high risks, but what risk/return combination are shareholders comfortable with? Companies should be run on behalf of their shareholders).

2 How might PEST help? (Briefly, do a brief PEST, identify a main risk/uncertainty for each and suggest how the risk/uncertainty might be managed eg, close monitoring, market research, buying currency or chocolate using futures contracts. Anything that helps lower risk and uncertainty but keeps returns the same must help all shareholders).