Which of the following does not pose a risk to a person’s ability to service their...

Which of the following does not pose a risk to a person’s ability to service their required debt payments?
1. Variability in cash flows caused by changes in earnings
2. A decrease in asset values
3. Risks covered by insurance

None of the above affect a person’s ability to service their required debt payments

Solutions

Expert Solution

Those risks which are covered by insurance are protected by the insurance company and insurance company will be reimbursing for the losses, and hence it will not pose a risk to the ability of the company to service the required debt payment.

All the other statement are false.

Correct answer is option (C) Risks covered by insurance.

jeff jeffy answered 2 years ago

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