Knowee
Questions
Features
Study Tools

Which of the following is not a source of financial risk?A) Exchange rates B) Interest rates C) Market Share D) Credit Terms

Question

Which of the following is not a source of financial risk?

A) Exchange rates
B) Interest rates
C) Market Share
D) Credit Terms

🧐 Not the exact question you are looking for?Go ask a question

Solution

The option that is not a source of financial risk among the ones listed is C) Market Share.

Here's why:

A) Exchange rates: This is a source of financial risk because if a company does business internationally, fluctuations in currency exchange rates can impact profitability.

B) Interest rates: This is a source of financial risk because changes in interest rates can affect the cost of debt for a company. If interest rates rise, so does the cost of borrowing money.

C) Market Share: This is not typically considered a direct source of financial risk. While losing market share can impact a company's revenues and profitability, it's not a financial risk in the same sense as exchange and interest rates. It's more of a business or operational risk.

D) Credit Terms: This is a source of financial risk because if a company extends credit to customers, there's always the risk that those customers will not pay their bills. This is known as credit risk.

This problem has been solved

Similar Questions

Which of the following would be considered a risk-free investment?a. Currencyb. Goldc. T-Billsd. Shares

Define Risk Management and types of risk in detail • Credit risk • Liquidity risk • Interest Rate Risk • Other risks

ABC received a loan from  , an Indonesian bank. Identify the risks that ABC hasLiquidity riskCredit riskInterest rate riskCurrency riskAnswer :

Which of the following is true about Money marketAnswer choicesSelect only one optionREVISITLow riskHigh RiskNo RiskVery High risk

The investment with the most risk would be aSavings account bCertificate of deposit cStocks

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.