Business risk is affected by all of the following EXCEPT
A) operating leverage.
B) earnings per share.
C) revenue stability.
D) cost stability.

Question

Quizplus · Accepted Answer

Business risk is the level of risk associated with the operations and financials of a company. It is affected by several factors such as operating leverage, revenue stability, and cost stability. However, earnings per share is not a factor affecting business risk. Earnings per share is a measure of a company's profitability that is calculated by dividing its net income by the number of outstanding shares of its common stock.

Business Risk Is Affected by All of the Following EXCEPT