Home › CUET UG › Business Studies › Financial Management › The risk of default in paying interest or repayi…
The risk of default in paying interest or repaying borrowed funds is termed:
Aoperating risk
Bbusiness risk
Cmarket risk
Dfinancial risk
Answer & Solution
Correct answer: D. financial risk
Financial risk is the risk of default on the fixed payments (interest/principal) attached to borrowed funds.
Related questions
Excess cash invested in cash alternatives is said to create:Because payments for purchases are usually made on credit, cash outflows in a month often Assets that turn into cash within a year through normal operations are contrasted with capCash held by a business is needed above all to pay the bills and meet the:Credit taken from suppliers, recorded as accounts payable, is called:Better inventory management, better collections and longer supplier terms together will:Working capital needs that stay in place all year round are described as:Working capital needs that rise and fall with the season are described as: