Paul’s friend Gabby had an idea of creating a photography service that went to school functions, such as football games, pep rallies and dances, to take candid pictures. The pictures would be available to purchase the following week. She needed $300 to buy additional equipment and start an advertising campaign, so she asked Paul for a loan. She promised to pay him back the $300 and give him 25 percent of her profits from the first semester. Gabby sold a few pictures the first week of school but quit going to events to take pictures. She can’t repay the loan and there are no profits. Paul lost $300. How would you describe the financial risk Paul faces?