Business Risk Is Affected by All of the Following EXCEPT

question 143

Multiple Choice

Business risk is affected by all of the following EXCEPT

• A) revenue stability.
• B) cost stability.
• C) operating leverage.
• D) earnings per share.

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Definitions:

Trade Credit

It is a type of commercial financing in which a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Fundamental Benefit

A primary or essential advantage that is intrinsic to a product, service, or activity.

ACP

Average Collection Period (ACP) is a financial metric that measures the average number of days it takes for a company to collect payments from its customers after a sale has been made.

Bad Debts

Accounts receivable that a company does not expect to collect and writes off as a loss.