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What is Meant by 'Financial Risk'? - Business Studies

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ConceptConcept of Financial Planning

Question

What is meant by Financial Risk?

Solution

Financial risk refers to the risk that borrowed funds would not be repaid. In other words, it implies the risk that the company would not be able to meet its fixed financial obligations such as interest payment, preference dividend and other repayment obligations.

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Solution What is Meant by 'Financial Risk'? Concept: Concept of Financial Planning.
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