Long-run financial risk:
A) Includes conditions such as low grain prices in a particular year.
B) Is easier to hedge over time than short-run financial risk.
C) Is related more too near-term transactions than to advancements in technology.
D) Generally results from changes in the underlying economics of a business.
E) Can generally be hedged such that the financial viability of a firm is protected.

Question

Quizplus · Accepted Answer

Long-run financial risk generally results from changes in the underlying economics of a business, such as shifts in consumer demand, technological advancements, or changes in regulatory environments, which can fundamentally alter a business's financial prospects.

Long-Run Financial Risk