A firm's business risk is largely determined by the financial characteristics of its industry, especially by the amount of debt the average firm in the industry uses.

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Quizplus · Accepted Answer

A firm's business risk is impacted by several factors, including the competition in the industry, the regulatory environment, the company's diversification, and the level of technological change. The amount of debt used by the average firm in the industry may impact a firm's financial risk, but it is not the only determinant of the overall business risk.

A Firm's Business Risk Is Largely Determined by the Financial