A(n)________ occurs when there is a concern that a chosen act or activity will not generate sufficient revenues to cover operating costs and repay debt obligations.

Question

Quizplus · Accepted Answer

Economic risk refers to the uncertainty regarding the ability of a business to generate sufficient revenues to cover operating costs and repay debt obligations. Cash flow, NPV, and capital budgeting are all related to financial analysis and decision-making but do not specifically address concerns about revenue generation and debt repayment.

A(n)________ Occurs When There Is a Concern That a Chosen