Which of the following is NOT associated with (or does not contribute to) busine
ID: 2710219 • Letter: W
Question
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.
Sales price variability.
The extent to which operating costs are fixed.
The effect of exchange rate changes on its foreign sales.
Raw material cost variability.
Increase in its interest cost.
Sales price variability.
The extent to which operating costs are fixed.
The effect of exchange rate changes on its foreign sales.
Raw material cost variability.
Increase in its interest cost.
Explanation / Answer
Answer: The extent to which operating costs are fixed is not associated with (or does not contribute to) business risk.
All other given factors contribute to business risk which are
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