Business Risk Is Affected by a Firm's Operations

question 6

Multiple Choice

Business risk is affected by a firm's operations.Which of the following is NOT directly associated with (or does not directly contribute to) business risk?

• A) Demand variability.
• B) Sales price variability.
• C) The extent to which operating costs are fixed.
• D) The extent to which interest rates on the firm's debt fluctuate.
• E) Input price variability.

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Definitions:

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments, known for their role in red tides and bioluminescence.

Symbiotic

A close and often long-term interaction between two different biological species, which may be beneficial, harmful, or neutral to the parties involved.

Zooxanthellae

Endosymbiotic, photosynthetic dinoflagellates found in certain marine invertebrates; their mutualistic relationship with corals enhances the corals’ reef-building ability.

Peptidoglycan

A polymer consisting of sugars and amino acids that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural strength.