Business Risk Factors: [Essay Example], 235 words GradesFixer

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Business Risk Factors

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Unfavourable local and global weather patterns may have an adverse effect on business, results of operations and financial condition. Operating in five business verticals and inability to manage our diversified operations may have an adverse effect on business. Derive a significant portion of our revenue from animal feed business and any reduction in demand or in the production of such products could have an adverse effect on business, results of operations and financial condition. Do not have long-term agreements with suppliers for raw materials and an increase in the cost of, or a shortfall in the availability of such raw materials could have an adverse effect on business and results of operations.

The improper handling, processing or storage of raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in our products, could subject to regulatory and legal action, damage reputation and have an adverse effect on business, results of operations and financial condition. Certain businesses are subject to seasonal variations that could result in fluctuations in results of operations. Unable to introduce new products and respond to changing consumer preferences in a timely and effective manner, the demand for products may decline, which may have an adverse effect on business, results of operations and financial condition. Outbreaks of livestock diseases in general, and poultry and shrimp disease in particular, can significantly restrict ability to conduct our operations.

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