The risk associated with a firm's operations, ignoring any financing effects, is known as _____ risk.
A)market
B)business
C)leverage
D)liquidity
E)inflation

Question

The risk associated with a firm's operations, ignoring any financing effects, is known as _____ risk. 
A)market
B)business
C)leverage
D)liquidity
E)inflation

Quizplus · Accepted Answer

Business risk refers to the uncertainty associated with a firm's operations, regardless of its financial structure or leverage. This risk includes factors such as competition, changes in consumer preferences, technological innovations, and other industry-specific factors that can affect a firm's revenues, profitability, and overall performance.

The Risk Associated with a Firm's Operations, Ignoring Any Financing