The three elements of risk that help in understanding differences across firms and changes over time in ROAs are:
A) product life cycles, cyclicality of sales, competitive constraint.
B) operating leverage, cyclicality of sales, product life cycles.
C) cyclicality of sales, competitive constraint, operating leverage.
D) operating leverage, competitive constraint, product life cycles.

Question

Quizplus · Accepted Answer

The three elements of risk that affect ROAs are operating leverage, cyclicality of sales, and product life cycles. These factors influence how firms manage costs and revenues, impacting profitability and risk.

The Three Elements of Risk That Help in Understanding Differences