Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations.
A) Sales price variability.
B) The extent to which operating costs are fixed.
C) The extent to which interest rates on the firm's debt fluctuate.
D) Input price variability.
E) Demand variability.

Question

Quizplus · Accepted Answer

Interest rate fluctuation is not directly related to a firm's operations and thus does not contribute to business risk. The other options are all related to a firm's operations and can affect its business risk.

Which of the Following Is NOT Associated with (Or Does