Business risk has to do with the way a business is financed (debt versus shares).

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Business risk refers to the potential that a company will have lower than anticipated profits or experience a loss rather than making a profit. It is primarily concerned with the operational aspects of the business, not how it is financed. Financing risk, which relates to the structure of a company's debt and equity, is considered separately under financial risk.

Business Risk Has to Do with the Way a Business