Which of the Following Factors Does Not Affect a Firm's

question 36

Multiple Choice

Which of the following factors does not affect a firm's business risk?

• A) Demand variability.
• B) Input price variability.
• C) Interest cost variability.
• D) Operating leverage.
• E) Sales price variability.

---

Definitions:

Fiscal Policy

Government policies related to taxation and spending aimed at influencing a country's economy.

Money Supply

The sum of financial resources accessible within an economy at a given moment, encompassing cash, coins, and amounts present in both checking and savings accounts.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy the needs of the community or help in the production of further goods.

Taxes

Mandatory monetary fees or different forms of charges levied on taxpayers by government entities with the purpose of financing government operations and a range of public spending.