The variability of operating earnings is associated with
A) Business risk.
B) Liquidity risk.
C) Exchange rate risk.
D) Financial risk.
E) Market risk.

Question

Quizplus · Accepted Answer

Operating earnings can vary due to a variety of factors, such as changes in competition, technological advancements, economic conditions, and industry trends. These factors all fall under the category of business risk, which refers to the risk that a company's operations and revenue streams will be negatively affected by factors outside of its control. Therefore, the variability of operating earnings is primarily associated with business risk. The other listed risks may also impact a company's financial performance, but they are not directly related to the variability of operating earnings.

The Variability of Operating Earnings Is Associated with