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Financial Distress
A situation where a company or individual cannot generate enough revenue or income to cover operating expenses or financial obligations.
Static Theory
A theory that analyzes economic variables without considering changes over time.
Business Risk
Business risk pertains to the potential for loss that a business faces from factors affecting its profitability or operational success, such as market competition and demand fluctuations.
Financial Risk
The possibility of losing money on an investment or business venture due to market conditions, interest rate changes, or other financial factors.
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