The risk associated with afirm's operations, ignoring any financing effects, is known as _____.
A) market risk
B) business risk
C) firm-specific risk
D) financial risk
E) beta risk

Question

Quizplus · Accepted Answer

Business risk refers to the risk inherent in a company's operations, independent of any financing or investment activities. It includes risks associated with the company's products or services, competition, market demand, regulatory changes, and other factors that can impact the company's profitability and viability. Market risk, firm-specific risk, financial risk, and beta risk are categories of risk that may be influenced by financing or investment activities.

The Risk Associated with Afirm's Operations, Ignoring Any Financing Effects