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Economic risk

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Economic risk
In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements.

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The rules help determine the extent to which a partner is deemed to bear the economic risk of loss for a partnership liability when it holds a partnership interest through a disregarded entity.
In an exhaustively researched series for the Los Angeles Times, Peter Gosselon identifies a three decade-long political and corporate effort to shift economic risk away form business and onto the backs of Americans.
Under the general rule of IRC section 752, a recourse liability is allocated to the partner that bears the economic risk of loss.
 
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