The business risk faced by an investor when investing in a company is related to:
A) changes in the economy.
B) investor behavior in the market.
C) the book value of a firm's assets.
D) the firm's ability to meet operating expenses in a timely manner.
E) security price fluctuations.

Question

Quizplus · Accepted Answer

Business risk is primarily concerned with the firm's ability to generate sufficient revenue to cover its operating expenses, which directly impacts its operational efficiency and profitability.

The Business Risk Faced by an Investor When Investing in a Company