Which of the following leads to less business risks compared to other factors?
A) High percentage of fixed costs
B) High operating leverage
C) More financial risk
D) High interest rates
E) More stable operations

Question

Quizplus · Accepted Answer

More stable operations lead to less business risks as it means less uncertainty and variability in the company's revenue and expenses. High fixed costs and high operating leverage increase business risks as they make the company vulnerable to changes in the market and demand. More financial risk and high interest rates also increase business risks as they increase the company's debt burden and cost of capital.

Which of the Following Leads to Less Business Risks Compared