It refers to a position when a company is unable to meet its fixed financial charges namely interest payment, preference dividend and repayment obligation. It is known as:
This question was previously asked in
Shift 16/06/2023 3:30 PM - 6:30 PM
A
Business Risk
B
Financial Risk
C
Operating Risk
D
Systematic Risk
Correct Answer
Financial Risk
Detailed Explanation
The situation described, where a company is unable to meet its fixed financial charges like interest payment, preference dividend, and repayment obligation, is known as:
2. Financial Risk
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