Introduction of the term Risk Principle
Give a brief introduction of the term Risk Principle?
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Risk Principle : this principle deals with the capital structure that must not admit high risk. If company issue big amount of preference shares out of the earnings of the company then fewer amounts will be left for equity shareholders as dividend is paid subsequent to the preference shares.
Importance of Economics:Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject
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