Revenue stability affects ________.
A) dividend risk
B) maturity risk
C) business risk
D) interest rate risk

Question

Quizplus · Accepted Answer

Revenue stability refers to how consistent a company's income is. A company with unstable revenue is more vulnerable to business risk, which is the risk of not being able to generate enough revenue to cover expenses. This can lead to decreased profitability or even bankruptcy. The other options, dividend risk, maturity risk, and interest rate risk are not directly affected by revenue stability.

Revenue Stability Affects ________