acc226 wk9 - financial condition to differ materially from...

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Required 1. Access and read Krispy Kreme's Management Discussion and Analysis (MD&A) section in either its annual report or its 10-K for the year ended February 3, 2002 [KrispyKreme.com]. What risks do Krispy Kreme's shareholders face as management and employees work to position the company for long-term success? From the “Management Discussion & Analysis” section, it is evident that Krispy Kreme is facing many risks that are being faced by almost all companies in the market. Those risks include: The company’s abilities to manage growth Possible delays in store openings Quality of franchise store operations Changes in consumers’ preferences Competition Compliance with government regulations “Forward-looking statements are based on management’s beliefs, assumptions, and expectations of our future economic performance….Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or
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Unformatted text preview: financial condition to differ materially from the expectations of future results ….Factors that could contribute to these differences include, but are not limited to: the company’s ability to continue and manage growth; delays in store openings; the quality of franchise store operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients…” 2. What are the managerial accountants' responsibilities in evaluating risk? It is the managerial accountant’s responsibility to try to attach a dollar value to the individual risk components. It is also the managerial accountant’s responsibility to make sure that investors are compensated for the risk they are undertaking, therefore if a project has a higher degree of risk, then this project should offer a higher return to compensate investors....
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