Financial Literacy

Write a paper between 500 – 750 words, in which you demonstrate your understanding of the concepts in the units, and you apply them to your own life. For each of the papers, you will have two prompts to choose from. You only have to answer one. Please turn in your essay via the Dropbox in Blackboard.

Option 1: Billionaire! If you were suddenly asked to manage a billion-dollar empire, what are the first things you would consider in terms of managing your empire. How could it be possible to look like a billionaire, and have a billion dollars worth of assets, but actually be flat broke and have negative net worth? As a successful billionaire, how would you use credit? Describe your business philosophy and give a few examples from business deals that you did that were very smart.

Option 2: Billionaire-No-More. Describe how a person who once had a billion dollars of net worth went bankrupt. What did she do? What were some of the bad decisions she made? What were her bad decisions with respect to credit? Describe her business, some of the things she did, and her flawed attitudes and beliefs about financial planning.

Answer Preview

Sean Quinn was once the richest man in Ireland having a net worth of $6.5 billion but was declared bankrupt with huge debts to pay to the Irish Bank. Sean Quinn invested 25% of the entire wealth of his family in an Irish bank where he chose a risky financial instrument namely…

(676 Words)