Business Risk Is Related with the Operations of the Firm

question 30

Multiple Choice

Business risk is related with the operations of the firm.Which of the following is not directly associated with, that is, not a part of, business risk?

• A)product demand variability
• B)sales price variability
• C)relative amount of fixed operating costs
• D)degree of price flexibility with respect to changes in operating costs
• E)changes in required returns due to financing decisions

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Definitions:

Inability

The lack of capacity, means, or skill to perform effectively.

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth; can also refer to the cell's control center that houses DNA.

Neuron

A basic unit of the nervous system that transmits electrical and chemical signals in the body.

Acute Stress

A form of stress that is brief and related to specific events or situations, often perceived as within one's coping abilities.