Share
Notifications

View all notifications

What is ‘Financial Risk?’ Why Does It Arise? - Business Studies

Login
Create free account


      Forgot password?
ConceptFinancial Decisions - Financing and Dividend

Question

What is ‘Financial Risk?’ Why does it arise?

Solution

Financial risk is a situation when a company is not able to meet its fixed financial charges. The fixed financial charges are the :-

  • Interest that is to be paid on borrowed capital and
  • Rate of dividend to be paid on preference capital.
  Is there an error in this question or solution?

APPEARS IN

Solution What is ‘Financial Risk?’ Why Does It Arise? Concept: Financial Decisions - Financing and Dividend.
S
View in app×