BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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debts
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principal and interest
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Detailed explanation-1: -Financial risk is the chance that a firm would fail to meet its payment obligations. Interest & Repayment on borrowed funds have to be paid regardless of whether or not a firm has earned a profit. The risk of default on payment is known as financial risk.
Detailed explanation-2: -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-3: -Credit risk, liquidity risk, asset-backed risk, foreign investment risk, equity risk, and currency risk are all common forms of financial risk.
Detailed explanation-4: -Financial Risk: Financial Risk as the term suggests is the risk that involves financial loss to firms. Financial risk generally arises due to instability and losses in the financial market caused by movements in stock prices, currencies, interest rates and more.