deznutscentral deznutscentral

01-11-2019
Business

contestada

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

Respuesta :

fernandoalonsoc fernandoalonsoc

20-11-2019

Answer:

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.

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