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What are implicit and explicit risks of owning a business?

What are implicit and explicit risks of owning a business?

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Implicit risk is a type of risk that is involved in a business where the business decision effects the entire organisation or not and the implicit risks of holding a business is the risk of the total operating profit and the net profit that can adversely effect the shareholders. The total net assets changes that can also adversely effect the organisation. The debt component of capital structure which adds on more risk. The explicit risk are loss of dividend or decrease in the share price. Uncertainty of return etc.

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