i am frequently turned to as to the meaning of business risk.
What business risk is, is the risk that a company will not have adequate cash flow to meet its operating expenses.
A company's risk is composed of financial risk, which is linked to debt, and risk, which is often linked to economic climate. If a company is entirely financed by equity, it would pose almost no financial risk, but, it would be susceptible to business risk or changes in the overall economic climate.
Saturday, November 14, 2009
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