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Question
The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as ______.
Options
Operating risk
Financial risk
Business risk
None of the above
MCQ
Fill in the Blanks
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Solution
The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as financial risk.
Explanation:
If a company has trouble meeting its debt obligations or other financial responsibilities, that’s called a financial risk. When a business borrows money, it’s hard to know if it can handle its funds properly.
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