The risk cause by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:
A)interest rate risk
B)business risk
C)tax risk
D)none of the above

Question

Quizplus · Accepted Answer

Interest rate risk refers to the potential risks that arise from changes in interest rates and their impact on a company's finances, including variations in interest expense unrelated to sales or operating income. Business risk refers to the risks inherent in a company's operations, such as competition or changes in consumer demand. Tax risk refers to the risk of an adverse tax outcome. None of the above is not the correct answer in this case.

The Risk Cause by Variations in Interest Expense Unrelated to Sales