INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Businesses rely on equipment 24/7. If this breaks down this leads to lower production and repair costs.
|
|
|
Setting up a business can mean you lose your own or the banks money
|
|
|
It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services.
|
|
|
Blockbusters failed to address the threat of Netflix as they had no digital content available online.
|
Detailed explanation-1: -Financial risk is the risk that a business will not be able to meet its debt repayment obligations, which in turn could mean that the potential investors will lose the money invested in the company. The more debt a firm has, the higher the potential financial 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 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-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.
Detailed explanation-5: -Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk. Financial risk is a type of danger that can result in the loss of capital to interested parties.