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NEW QUESTION: 1
Which of the following affects a firm's business risk?
A. The degree of operating leverage.
B. The risk of adjusting sales prices.
C. All of these answers are correct.
D. The level of uncertainty about future sales.
Business risk depends on: (1) unit sales variability, (2) sales price variability, (3) input price variability, (4) ability to adjust output prices for changes in input prices and, (5) the extent to which costs are fixed (operating leverage).
NEW QUESTION: 2
A. Option D
B. Option C
C. Option A
D. Option B