Henrietta was a risk taker while her son Freidrich wasn’t. What challenges or disadvantages would a company have that was a risk taker in terms of cost of capital and investments? What about the challenges or disadvantages under Freidrich? Freidrich took over the family business and although he truly believed in the superiority of his family chocolates, he was more concerned about profit margins and reducing risk. A few years after his mother's retirement, Freidrich announced that Wulfurt Family Chocolates was going public. Freidrich preferred to go public so he could pass on the risk to shareholders as well as raise capital to open up a factory.Henrietta, on the other hand, was a risk taker. When dealing with the expansion of Wulfurt Family Chocolates, Heirich often advised Henrietta to avoid certain projects because of the high required rate of return. Henrietta didn't mind the risk and sometimes authorized investments that had a 35% required rate of return. Luckily for her, the rapid company growth helped her achieve her returns.