BUISENESS MANAGEMENT
RISK MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Less risk of other types
|
|
|
Greater products and services
|
|
|
Better management
|
|
|
Greater financial reward
|
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: -Some common financial risks are credit, operational, foreign investment, legal, equity, and liquidity risks. In government sectors, financial risk implies the inability to control monetary policy and or other debt issues.
Detailed explanation-3: -We can also say that it measures the financial risk of the business firm. The formula can be calculated in the following ways: DFL = % Change in Net Income / % Change in Earnings Before Interest and Taxes (EBIT) DFL = % Change in Earnings per Share (EPS) / % Change in EBIT.
Detailed explanation-4: -Illness or accident-an increase in expenses due to high medical bills, treatments, and prescription costs, as well as the loss of income if you cannot work. Legal liability-having a legal suit filed against you. Death-Loss of household income, lack of funds needed to make monthly bills, and funeral costs.