The four basic determinants of business risk include all of the following except:
A) the stability of the domestic economy.
B) the level of fixed cost used in the company's production process.
C) sensitivity to the business cycle.
D) competitive pressures in the firm's industry.

Question

Quizplus · Accepted Answer

The level of fixed cost used in the company's production process is related to financial risk, not business risk. Business risk is more about external factors like economic stability, business cycle sensitivity, and competitive pressures.

The Four Basic Determinants of Business Risk Include All of the Following