Business risk refers to
A) the risk associated with financing a firm with debt.
B) the variability of a firm's expected earnings before interest and taxes.
C) the uncertainty associated with a firm's CAPM.
D) the variability of a firm's stock price.

Question

Quizplus · Accepted Answer

Business risk refers to the variability of a firm's expected earnings before interest and taxes (EBIT). It is the risk associated with a company's operations and the uncertainty of its future earnings due to factors such as competition, changes in consumer demand, and changes in input prices.

Business Risk Refers to