BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -This is included in the category of financial risk. There are at least 4 risks included in it, namely income risk, expenditure risk, asset or investment risk, and credit risk.

Detailed explanation-2: -Financial risk refers to your business’ ability to manage your debt and fulfil your financial obligations. This type of risk typically arises due to instabilities, losses in the financial market or movements in stock prices, currencies, interest rates, etc.

Detailed explanation-3: -Financial risk due to objective factors depend on changes in financial markets such as interest rates, market rates and commodity prices. Financial risk can also be due to subjective factors, in which the financial situation is the source of risks.

Detailed explanation-4: -Liquidity risk occurs when an individual investor, business, or financial institution cannot meet its short-term debt obligations. The investor or entity might be unable to convert an asset into cash without giving up capital and income due to a lack of buyers or an inefficient market.