________ is the risk reflected in fluctuations of a firm's cash flows because it uses debt or other fixed-cost financing.
A)Systematic risk
B)Business risk
C)Financial risk
D)Diversifiable risk

Question

Quizplus · Accepted Answer

Financial risk refers to the risk associated with a company's financial structure, specifically the amount of debt and other fixed-cost financing it uses to fund its operations. Fluctuations in cash flows due to changes in interest rates, borrowing costs, or other financial factors will affect the company's ability to meet its financial obligations and may impact its financial performance.

________ Is the Risk Reflected in Fluctuations of a Firm's