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Financial risk is most associated with

This question belongs to Commerce Financial Management
Financial Management
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Financial risk is most associated with_______________.

Answer & Solution
Correct Answer: Option B
Financial risk is most associated with the use of debt financing by corporations. Financial risk is the risk that a company won't be able to meet its obligations to pay back its debts. Which in turn could mean that potential investors will lose the money invested in the company. The more debt a company has, the higher the potential financial risk.
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