Business Risk Is a Function of

question 39

Multiple Choice

Business risk is a function of

• A) Sales variability.
• B) Operating leverage.
• C) Financial leverage.
• D) a and b.
• E) b and c.

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Definitions:

Vertical Line Test

A method used in determining if a graph represents a function, stating that if a vertical line intersects the graph more than once, then the graph is not a function.

Function

An interaction between a collection of inputs and a series of allowed outputs, where each input has a unique output association.

Horizontal Shift

A movement of a graph in the left or right direction along the horizontal axis.