The equity risk derived from the firm's operating activities is called ____________ risk.
A) market
B) systematic
C) extrinsic
D) business
E) financial

Question

Quizplus · Accepted Answer

Business risk is the equity risk that comes from the firm's operating activities, reflecting the uncertainty associated with the firm's earnings due to factors like demand for its products, pricing competition, input costs, and operational efficiency.

The Equity Risk Derived from the Firm's Operating Activities Is