ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Businesses rely on equipment 24/7. If this breaks down this leads to lower production and repair costs.
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Setting up a business can mean you lose your own or the banks money
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It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services.
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Blockbusters failed to address the threat of Netflix as they had no digital content available online.
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Detailed explanation-1: -Financial risk refers to the likelihood of losing money on a business or investment decision. Risks associated with finances can result in capital losses for individuals and businesses. There are several financial risks, such as credit, liquidity, and operational risks.
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 is a condition that arises as a result of changes, both internally and externally, that can be financially detrimental to a person, group, or company. The losses caused by this financial risk can be very diverse.
Detailed explanation-4: -Financial risk relates to how a company uses its financial leverage and manages its debt load. Business risk relates to whether a company can make enough in sales and revenue to cover its expenses and turn a profit. With financial risk, there is a concern that a company may default on its debt payments.
Detailed explanation-5: -Financial risk is the possibility of losing money on an investment or business venture.