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Business risk is concerned with the operations of the firm. Which of the following is not associated with or not a part of business risk...?

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80. Business risk is concerned with the operations of the firm.

Which of the following is not associated with or not a part of business risk. Pick one.

1 Demand variability
2 Sales price variability
3 The extent to which operating costs are fixed
4 Changes in required returns due to financing decisions
5 The ability to change prices as costs change.

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Solution Summary

The solution discusses the business risk concerned with the operations of the firm.

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Business risk is defined as the potential for loss of value through competition, mismanagement, and financial insolvency.

Demand variability is associated with business risk because is demand for a company's product or stock is not predictable then ...

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