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Sagot :
Risk is the major factor to consider when deciding the funding, when funds are provided it is a risk that whether the funds will be received or not.
What is Risk?
Risk is the threat of being unable to receive the funds back, this is the highest level of risk, there are many small risks too, but the highest level is losing the money.
There could be a small portion of loss of money or sometimes the debtor completely defaults so not a single penny is retrieved.
Funding is a choice and the debtor should be chose according to the risk appetite of the investor or lender on money.
There are investors who are risk averse are not willing to take the risk and fine with the less amount of returns and there are risk takers, who want high returns in return of high risk of defaulting.
Learn more about Risk at https://brainly.com/question/27331968#SPJ1
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