economic risk


In financing a project, the risk that the project's output will not generate sufficient revenues to cover operating costs and to repay debt obligations.

Use economic risk in a sentence

I thought it was too much of an economic risk and I did not want to go through with the hassle of it and everything.

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Mr. Rogers didn't care about the economic risk of producing his television show; he was doing it for a higher purpose.

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After a week of consideration, the potential investor decided that the economic risk of making an investment was just too high.

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foreign investment risk matrix (FIRM) ability to pay