Evidence That a Firm Has High Business Risk Would Be

question 21

Multiple Choice

Evidence that a firm has high business risk would be provided by its volatile ____.

• A) Fixed costs.
• B) Profit after taxes.
• C) Operating profit.
• D) Sales.
• E) Employee turnover.

---

Definitions:

Capital Intensive

A description of industries or businesses that require large amounts of capital investment compared to labor.

Alternative Technologies

Various methods or means of producing goods or services that differ from current practices, often to improve efficiency or sustainability.

Optimal Method

The best or most efficient approach to achieve a specific goal or solve a particular problem.

Production Maximizes

The process of adjusting the input of production to achieve the highest possible output level or efficiency.