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What is the difference between business risk and financial risk?Business risk considers to the uncertainty a company has regarding to its operating income (as well termed as earnings before interest and taxes or EBIT). Business risk is brought on through sales volatility and intensified by the existence of fixed operating costs.The term financial risk is the additional volatility of net income caused by the existence of interest expense. Firms that have just equity financing have no financial risk because they have no debt on which to make fixed interest payments. Alternatively, firms that operate primarily on borrowed money are exposed to a high degree of financial risk.
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It is in the form of third-party guarantees which protect against losses up to a particular fixed level. This is available in the form of a corp
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Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.
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