Business Risk Is Affected by a Firm's Operations

question 34

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)input price variability
• C)the extent to which operating costs are fixed
• D)the extent to which interest rates on the firm's debt fluctuate

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Definitions:

Sensory Interaction

The principle that one sense can influence or interact with another; the interaction of the senses to enhance the perception of the world.

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does higher up in the sky.

Horizon

The line where the earth's surface and the sky appear to meet, often used metaphorically to denote the limit of a person's knowledge, experience, or interest.

Bright

Having high intelligence or quick intellectual capacity.