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The chance that a firm cannot make scheduled interest and principal payments on its debt is:
APolitical risk
BPersonal risk
CFinancial risk
DPhysical risk
Answer & Solution
Correct answer: C. Financial risk
1. It arises from borrowing.
2. Missed payments are the danger.
3. It is financial risk.
_Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._
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