Which of the Following Factors Affects Business Risk

question 77

Multiple Choice

Which of the following factors affects business risk?

• A)sales variability
• B)proportion of debt in the firm's capital structure
• C)taxes
• D)preferred stock dividends

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Definitions:

Control Limits

Refer to the statistical bounds within process control that signal when a process might be going out of control or is otherwise operating outside of its expected range.

Special Cause Variation

Variation in a process caused by identifiable factors, typically indicating that the process is not in control.

Process Capability

A statistical measure of a process's ability to produce output within given specifications.

Out Of Control Signals

Indicators within a process control or statistical control chart that highlight when a process is deviating from its stable state or specified limits.