Q769
Financial hazard is most related with
A.
use of equity financing by corporations
B.
use of debt financing by corporations
AnswerC.
equity investments held by corporations
D.
debt investment held by corporations
Answer: Option B
Solution
Answer: Option B
Solution:
Financial hazard is most related with use of debt financing by corporations. Hazard risks arise from property, liability, or personnel loss exposures and are generally the subject of insurance. Financial risks arise from the effect of market forces on financial assets or liabilities and include market risk, credit risk, liquidity risk, and price risk.