difference between business risk and financial risk

DIFFERENCE BETWEEN BUSINESS RISK AND FINANCIAL RISK

November 9, 2022 commerceiets No Comments

Business Risk and Financial Risk: Meaning and difference between these two terms. BUSINESS RISK: Business risk is also known as operating risk. It implies uncertainty in profits or danger of loss leading to shut down of that business. These risks may arise due to future uncertainties. Example: FINANCIAL RISK: this risk is associated with the…

FINANCIAL MANAGEMENT, KEY DIFFERENCES

LEVERAGE NOTES

November 8, 2022 commerceiets No Comments

Leverage notes: Operating leverage, Financial leverage, Composite or combined leverage. QUESTION: Differentiate between Financial risk and Business Risk? Answer: BUSINESS RISK: Business risk is also known as operating risk. It implies uncertainty in profits or danger of loss leading to shut down of that business. These risks may arise due to future uncertainties. Example: FINANCIAL…