The equity risk derived from a ﬁrm's operating activities is called _____ risk.
A) Market.
B) Systematic.
C) Extrinsic.
D) Business.
E) Financial.

Question

Quizplus · Accepted Answer

The equity risk derived from a firm's operating activities is known as business risk. Market risk refers to the risk of losses caused by factors affecting the wider market, systematic risk refers to the overall risk within a particular market or economy, extrinsic risk refers to the risk caused by external factors, and financial risk refers to the risk associated with a firm's financing structure.

The Equity Risk Derived from a ﬁRm's Operating Activities Is