Question
Which of the following types of credit risks is most
relevant when an MSME has difficulty recovering dues from corporate clients, particularly when the invoices exceed the agreed-upon payment terms?Solution
Credit risk refers to the possibility of loss due to a borrower’s inability to repay debt or meet financial obligations. For an MSME facing difficulties in recovering payments from corporate clients, the primary concern is credit risk, particularly from receivables that exceed payment terms.
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Particulars (Rs.)
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Cash an...
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