The amount of debt outstanding relative to one's assets is which of the following?
A)Operating risk.
B)Debt risk.
C)Financial risk.
D)Interest rate risk.
E)None of the above.

Question

Quizplus · Accepted Answer

The amount of debt outstanding relative to one's assets is known as financial risk, as it measures the degree of financial leverage being used by a company or individual. Operating risk refers to the risk of loss from a company's normal operating activities, debt risk is the risk of default on debt obligations, and interest rate risk is the risk of changes in interest rates affecting investment returns or borrowing costs.

The Amount of Debt Outstanding Relative to One's Assets Is