What is financial risk? How is it related to business risk?

Q: What is the connection between Business Valuation and Financing Options ?

A: Business valuation:  The economic worth of a firm or business unit is determined via business…

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: why an increase in cost of debt will increase cost of capital associated with business risk and…

A: The cost of capital is the minimal rate of return that a company must earn before it may generate…

Q: What is hedge accounting?

A:

Q: question is related to FINANCIAL RISK MANAGEMENT

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Distinguish between business and financial risk

A: Financial risk refers to the ability of a company to handle its debt and financial leverage, while…

Q: a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the causes of the financial risk?

A: financial risk - financial risk is the possible danger of losing money from an investment made by…

Q: What are the real risks of an adverse financial outcome, especially in the short run?

A: Risk is the important factor of investment decisions to explain the capability of an investor to…

Q: Define corporate risk

A: Corporate risk is the risk related to the company’s normal course of activities. The corporate…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What is financial risk, and how does it arise?

A: Answer: Usually, financial risk refers to a situation where a company is not able to pay its fixed…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: How does operating leverage affect business risk?

A: If an organization has high fixed expenses or cost, and if an organization experiences issues…

Q: How do earnings and cash are useful assets with future earnings potential? Does investors tend to…

A: Earnings and cash flows are two important aspects for a company. Earnings and positive cash flows…

Q: What is withdrawal risk?

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Define the term exposure to financial risk?

A: The question is based on the concept of Financial risk and its exposure.

Q: How do investors account for risk when determining an asset’s value?

A: Asset valuation helps to determine the fair value of the asset. Various asset valuation models such…

Q: What is financial risk?

A: Risk refers to the undesired consequences arises due to the uncertainty. In other words, risk refers…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: Who are financial intermediaries?

A: Introduction: Financial intermediaries play an important role in financial markets & offer a…

Q: What are the advantages of regulation of financial reporting?

A: Financial reporting refers to the disclosing of communicating the financial statements to the…

Q: Discussion questions: What are the basic risks faced by financial intermediaries? Discuss each…

A: Financial intermediaries : Financial intermediaries can be described as institutions that act as the…

Q: what is the difference between finance and accounting?

A: Finance means the management of assets and liabilities of a business organisation to focus upon…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: In finance, how essential is accounting?

A: Accounting is recording of the transactions occurring in the company. Accounting is very essential…

Q: When is the financial risk by far the most critical element to consider?

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: Implications of the business risk approach?

A: Business risk is the exposure a company or organization has to factor(s) that will lower its profits…

Q: What is risk? Why must risk as well as return be considered by the financial manager who is…

A: Risk is associated with every business it is one of the important functions of the management to…

Q: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

Q: What is a financial risk management certificate?

A: Financial risk management course refers to the professional qualification which focus provides the…

Q: Could you explain the term "financial risk" in simple terms

A: Financial risk - The risk of losing money on an investment.

Q: What is sound financial management

A: Finance is referred as the study of the assets as well as funds. It intertwined but does not same…

Q: Explain the difference between financial risk andbusiness risk.

A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…

Q: What is financial advisor

A: A financial advisor may be a general term used for various financial professionals like insurance…

Q: What does investing activities includes?

A: Definition: Statement of cash flows: The statement of cash flow is a financial statement that shows…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: How to deal with financial risk

A: Financial risk is always present in business situations but one thing we can do it that we can…

Q: What are some determinants of business risk?

A: Business risk is referred as the exposure of risk factors towards a company or a business which…

Q: How does risk management affect a company’s ability to finance its projects?

A: Risk is associated with every business; there are some risks which are controllable by the…

Q: Briefly describe the meaning of financial risks and its major types

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…