Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Define corporate risk
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Step 1
Corporate risk is the risk related to the company’s normal course of activities. The corporate refers to the methods which help in analysing and reducing the financial losses. The corporate risk includes the business risk and financial risk.
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Step 2
The financial risk is the risk which is related to the non-payment of the fixed financial charges. The financial risk arises when any business entity estimates that it is not able to pay its debt. The financial risk result in the loss of the money invested by the investors. The increase in the debts capital will increase the financial risk.
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