Which of the following is the main source of financial risk?
A)Foreign operations and exchange rate volatility
B)Corporate debt and interest rate volatility
C)Volatility in world oil prices
D)Fluctuating share prices

Question

Quizplus · Accepted Answer

Corporate debt and interest rate volatility are the main sources of financial risk because they directly affect a company's cost of borrowing and its ability to meet its debt obligations. Changes in interest rates can significantly impact the cost of existing and new debt, influencing a firm's financial stability.

Which of the Following Is the Main Source of Financial