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Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.
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A decrease in the debt ratio will have no effect on?
business risk
What is gearing risk?
It is the risk in the way a business is financed thus whether by equity or debt
An increase in the debt ratio will generally have no effect on what?
business risk
A decrease in the debt ratio will generally have no effect on what?
business risk
What types of risk are involved in extending credit to business?
The risk of lending on character is called moral risk. Business risk involves lending on capacity. The risk of lending on capital is called property risk. An ideal business borrower will combine a minimum of each.
A decrease in the debt ratio will have no effect on?
business risk
What is gearing risk?
It is the risk in the way a business is financed thus whether by equity or debt
An increase in the debt ratio will generally have no effect on what?
business risk
A decrease in the debt ratio will generally have no effect on what?
business risk
What types of risk are involved in extending credit to business?
The risk of lending on character is called moral risk. Business risk involves lending on capacity. The risk of lending on capital is called property risk. An ideal business borrower will combine a minimum of each.
Can creditor take your house for business debt?
That depends, is the business a Partnership or Sole Proprietorship? If it is one of these personal assets can be seized to make up for business debt. If your business however is an LLC (Limited Liability Corporation) than personal assets are not associated with the business and therefore not at risk.
Which of the following is a disadvantage of debt financing?
Banks are usually unwilling to fund a business in its early stages of development. Banks generally don't want to take the risk that a business will fail and default on its debt obligations.
Is minimizing weighted average cost of capital by having a largely debt-based capital structure a high-risk strategy given the threat of bankruptcy in an over leveraged business?
Yes. All of the items in your question denote a high-risk strategy. "Largely debet-based capital structure", "given the threat of bankruptcy", overleveraged business". Minimizing the weighted average cost of capitol is simply an accounting tool and is not a strategy and so has no impact on the risks involved in operating a business. Yes, try and keep that debt down.
Why you must willing to take the risk involved in business to be or successful entrepreneur?
kasi maganda me hehehe
What is the single most important quality in business?
Hi all, The Single most important quality in business is to know the risk involved in that business. Regards Kunal
What is enterpreneurship describe at least three definition?
Someone who has a flair for business ideas, and has the confidence to take the risk involved in setting up a business..
How would a person figure out a debt to equity ratio?
A person would figure out a debt to equity ration by considering the effectiveness of the business practice, the level of risk versus stability, the ability of the business to sustain itself without regular cash infusion.
