Which of the following is considered a component of financial risk?
A)Fixed operating costs
B)Variable operating costs
C)The variability of a product's selling price
D)Interest payments on bonds
E)Fixed labor costs

Question

Quizplus · Accepted Answer

Interest payments on bonds are considered a component of financial risk because they represent a fixed financial obligation that the company must meet regardless of its financial performance. Financial risk generally refers to the risk associated with financing, including the risk of being unable to meet fixed financial obligations such as interest payments.

Which of the Following Is Considered a Component of Financial