Ask Question
6 October, 22:44

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk

+4
Answers (1)
  1. 7 October, 01:55
    0
    He is mitigating the Credit Risk if he experiences liquidity problems then he will be able to leverage in his own savings to continue his operation

    Explanation:

    The entrepreneur is taking the risk of opening a business therefore he is saving in case he does not have enough liquidity to pay its debtors. This risk is called: Credit Risk.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers