Identify the risks in the following cases and how should management respond to such risks. In arriving at the best response, identify the consequences of each options (positive/negative).

3. Mr. A has been a farmer for 2 decades now with corn as his main agricultural product. He is planning to enter into an early contract for some of their anticipated crop to deliver corn at a fixed price.

4. A fast food restaurant in a small city receives food deliveries twice a week. There are no other means of procuring needed materials/supplies other than this.