The stability of a firm's operating income is the focus of:

Name: The stability of a firm's operating income is the focus of:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Business risk is the level of uncertainty associated with a firm's earnings or operating income. Therefore, it is directly related to the stability of a firm's operating income. Financial leverage, weighted-average cost of capital, and capital structure are all related to a company's financing decisions and not directly related to the stability of operating income.

The Stability of a Firm's Operating Income Is the Focus