All of the following factors influence a firm's business risk except:
A)degree of operating leverage
B)variability of interest rates
C)variability of operating costs
D)variability of selling prices

Question

Quizplus · Accepted Answer

All other choices (operating leverage, operating costs, selling prices) directly affect the firm's operations and revenue generation, which in turn affect business risk. Variability of interest rates, while affecting the firm's cost of capital, does not directly impact its operations or revenue generation.

All of the Following Factors Influence a Firm's Business Risk