A firm's business risk depends upon:

Question

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A firm's business risk is primarily determined by the risk of its assets and operations. This refers to the risk inherent in the company's products or services, competition, regulatory changes, and other uncontrollable factors that can affect the company's profitability. While a firm's use of debt and the costs of financial distress can certainly impact its overall risk profile, they are not the primary drivers of business risk. Similarly, the types of debt financing utilized will have a more direct impact on the firm's financial risk rather than its business risk.

A Firm's Business Risk Depends Upon