Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations.
A) sales price variability.
B) the extent to which operating costs are fixed.
C) the extent to which interest rates on the firm's debt fluctuate.
D) input price variability.
E) demand variability.

Question

Quizplus · Accepted Answer

Interest rate fluctuation on the firm's debt is not directly related to the firm's operations and therefore does not contribute to business risk. The other options are all related to the firm's operations and do contribute to business risk.

Which of the Following Is NOT Associated with (Or Does