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Business Risk VOcabulary

T. York

CASE 3.1 Vocabulary

Cash flow statement Having the ability to grow, expand, develop, etc.
collateral Uncertainty about commodity prices and the possibility of a change in prices that would adversely affect the business.
diversification Risks associated with individuals and their relationships to each other.
financial risk Something that remains above what is used or needed.
grant Risks that can negatively affect production levels and lead to significant losses.
instltutional risk Something of value deposited with a lender as a pledge to secure repayment of a loan.
insurance Coverage by contract in which one party agrees to indemnify or reimburse another for loss that occurs under the terms of the contract.
Market risk A sum of money given by a government or other organization for a particular purpose.
mitigate A situation in which more than one possible outcome exists, some of which may be unfavorable.
Personal risk A statement of projected payments and receipts associated with a particular business plan.
production risk Risks related to fulfilling business agreements and contracts, tort liability, and environmental liability and concerns about water quality, erosion and pesticide use.
risk The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks.
risk management The production of two or more commodities for which production levels and/or prices are not closely correlated.
shortfall To make less severe
surplus The quantity or extent by which something falls short; deficiency; shortage.
viable  Exists because of the need to finance business operations and maintain cash flow levels adequate to repay debts and meet other financial obligations.

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