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9 February, 03:55

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk

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  1. 9 February, 05:37
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    He is mitigating the Credit Risk if he experiences liquidity problems then he will be able to leverage in his own savings to continue his operation

    Explanation:

    The entrepreneur is taking the risk of opening a business therefore he is saving in case he does not have enough liquidity to pay its debtors. This risk is called: Credit Risk.
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