1.

What Is Risk Factor?

Answer»

Company raising the capital by borrowed capital, as it accepts the risk in two ways:

  1. Company MAINTAINS the PAYMENT of interest as well as installments of borrowed capital at predecided rate and time without being CONCERNED about the profits and losses.
  2. Borrowed capital is secured capital in the case where the company fails to MEET the contract done with the lenders of the money.

Company raising the capital by borrowed capital, as it accepts the risk in two ways:


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