Which of the Following Factors Affects Business Risk

question 7

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) preference share dividends

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Definitions:

Ultimatum Game

A game in economic experiments where two players decide on how to divide a sum of money; the proposer suggests a split, and the responder can accept or reject it.

Decider

The person responsible for making decisions, especially in contexts where multiple individuals or groups may be affected.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be prevented from using them and one person's use does not reduce availability for others.

Commons Dilemma

A situation in which individuals' short-term self-interest conflicts with long-term group interest and well-being, typically regarding the overconsumption of a shared resource.