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MBA 524 MBA524 MBA/524 State Fair of Virginia.docx

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MBA 524 MBA524 MBA/524 State Fair of Virginia.docx

By: Tyla Lang Date Due: Sunday April 11, 2021 by 11:59pm Date Submitted: Wednesday April 7, 2021

The State Fair of Virginia was in its current precarious financial condition because they were unable to pay the $83 million against a $47 million investment portfolio in order to develop its new fairgrounds in 2003 (Schnarr & Rowe, 2012).

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MBA 524 MBA524 MBA/524 State Fair of Virginia.docx

By: Tyla Lang Date Due: Sunday April 11, 2021 by 11:59pm Date Submitted: Wednesday April 7, 2021

The State Fair of Virginia was in its current precarious financial condition because they were unable to pay the $83 million against a $47 million investment portfolio in order to develop its new fairgrounds in 2003 (Schnarr & Rowe, 2012).
The organization used the loan in order to build a new fairground that was supposed to increase the organizations income and the number of fairground visitors.
However, when the year of 2009 came the United States of America as a whole were all experiencing what we knew as the “2008 financial crisis”, which lessened facilityrentals and of course donations from outside entities (Clark, 2012).
However, the main reason for the fair’s financial condition was due to multiple external and unforeseen factors. Of course, the State Fair of Virginia was unable to predict the economic downfall or other conditions that arose when they borrowed the $83 million years prior.
I will say that the one thing that the fair was able to evade was “putting all of their eggs in one basket”,they did not diversify enough was the real demise. This demise will also effect several parties in different ways as well.
The financial conditions facing the State Fair of Virginia will effect several parties in ways such as the following. One of the challenges have an impact on the board and management of the non-

MBA 524 MBA524 MBA/524 State Fair of Virginia.docx

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