Financial risk is associated with changes in
A)the demand for a firm's products.
B)a firm's debt.
C)a firm's labor costs.
D)government regulations of a firm's activities.

Question

Quizplus · Accepted Answer

Financial risk is primarily associated with a firm's debt. This includes the risk of default, interest rate changes, and other factors that can impact the firm's ability to repay its debts. While changes in demand, labor costs, and government regulations can also impact a firm's financial performance, these are not typically considered direct sources of financial risk.

Financial Risk Is Associated with Changes in