Which of the following is considered a part of financial risk?
A) Demand variability
B) Sales price variability
C) The extent to which operating costs are fixed
D) Changes in interest rates on debt
E) The ability to change prices as costs change

Question

Quizplus · Accepted Answer

Changes in interest rates on debt are considered a part of financial risk, as they can affect the cost of borrowing money and impact the company's financial stability.

Other choices such as demand variability, sales price variability, and the extent to which operating costs are fixed are typically considered within the realm of operational risk. The ability to change prices as costs change is more aligned with pricing risk or strategic risk.

Which of the Following Is Considered a Part of Financial