Business Risk Is Affected by a Firm's Operations

question 38

Multiple Choice

Business risk is affected by a firm's operations. Which of the following is NOT associated with (or does not 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:

Injunctive Norm

Social norms that are understood as what is typically approved or disapproved within a culture.

450 Volt Level

A reference to a high level of electric shock used in psychological experiments to study obedience, compliance, and the impact of authority on individual actions.

Experiment Level

The specific conditions or settings in which an experiment is conducted, often referring to the manipulation or control of variables.

Autokinetic Effect

A visual phenomenon where a stationary point of light in a dark environment appears to move because of small involuntary eye movements.