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business risk and finance risk

This topic has 3 replies, 2 voices, and was last updated 8 years ago by mrjonbain.

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February 1, 2017 at 12:12 pm #370488
sahalacca
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what are the differences between business risk and finance risk?
February 1, 2017 at 2:15 pm #370509
mrjonbain
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Business risk relates to risk connected to volatility of earnings of business due to inherent risks related to changeable costs and revenues associated with that particular business area which will apply to all firms regardless of how their business is financed.Finance risk will vary depending on how a business is financed with greater risk the more a company relies on debt finance.
February 1, 2017 at 3:00 pm #370537
sahalacca
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thanks for your information
February 2, 2017 at 12:45 pm #370755
mrjonbain
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You are welcome.
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