Practicing Success
Practicing Success
CUET Preparation Today
| The inability of a business to meet its fixed financial obligations, like payment of interest, is known as: |
Business risk Financial risk Market Risk Long term Risk |
| Financial risk |
| A firm has to decide the proportion of funds to be raised from either sources, based on their basic characteristics. Interest on borrowed funds has to be paid regardless of whether or not a firm has earned a profit. Likewise, the borrowed funds have to be repaid at a fixed time. The risk of default on payment is known as financial risk. |
