The answer is a Business risk.
What is meant by business risk?
- Business risk is the potential for a firm or organization to have lower earnings or failure. Business risk compromises a company's capacity to meet its financial objectives. Numerous variables may combine to produce business risk.
- Damage from fire, flood, or other natural disasters is a few examples of uncertainty-related hazards. The sudden financial loss brought on by a recession or the failure of another company that owes you money
- A variety of distinct classifications for risks. Market risk, credit risk, operational risk, strategic risk, liquidity risk, and event risk are a few categories that are frequently utilized.
The level and nature of risk attributable to a firm’s activities and operations, and ignoring the risks associated with the firm’s capital structure.
The answer is a Business risk.
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