In financial transactions, the risk that there will be no profit in selling of this asset is classified as _____________?
Correct answer: A. price risk
- A. price risk
- B. profit risk
- C. selling risk
- D. financial risk
Explanation
Price risk is the possibility that an asset’s market price will fall or fail to provide the expected gain when sold. Financial risk is a broader term involving financial obligations and funding, not specifically the selling price.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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