#1 This week we are learning about bonds, and the liabilities associated with them which are either current or long-term liabilities.

Let’s think about what we’ve learned in class in the previous weeks about accounting ratios and about how that current and long-term liabilities are viewed as ratios. Please take a look at these videos: the first one is short and will help you understand how long-term debt or liabilities affects ratios that are indicative of health. The second helps us better understand current liabilities to current assets ratios.

https://www.youtube.com/watch?v=vf-g51Br_l0

https://www.youtube.com/watch?v=EsZkkTrio7w For print of the audiio, please click on the closed caption icon on the right hand side of the bottom bar of the video.

When thinking about the assets to long-term debt ratio, a smaller number is healthier than larger numbers.

Class: What strategies might a business manager put into place if there is a high assets to long term debt ratio that needs to be brought down? Please begin a discussion. 150 words

#2 It’s true that investing in stocks is more risky than putting money in safer places such as savings accounts. When an investor takes on risk, then there is the probability that there could be a large return on their investment. The flip side of that is true, too, that the greater the risk (the greater the chances for a high return) the riskier the investment because a loss could put you in the hole versus a savings account where your investment is safe and insured.

What businesses and individuals have to consider is what types of businesses to invest in. To be safe and protect investments, it’s good to consider diversifying your stock portfolio. Here is a good video that talks about diversification and gives us a good picture of how to diversify our stocks: https://www.youtube.com/watch?v=FrmoXog9zig

For print of the audio, please click the closed caption icon on the right hand side of the bottom bar, under the video screen.

As you have learned in the video, choosing to invest in the same type of companies and not diversify can be riskier, but if investments aren’t diversified and the industries as a whole do well, then a lot of money can be made. On the other hand, much money can be lost if the industry takes a down turn.

Class: What thoughts do you have about diversification? What strategies might you use if you had money to invest in the stock market, or if you were the financial manager choosing stock investment for your business? Please start a discussion. 150 words