What are some determinants of business risk?

Jump to Solution

What are some determinants of business risk?


What are some determinants of business risk?

Explanation & AnswerSolution by a verified expert

Here is a tip:

Business risk is an uncertainty that varies from company to company.


Business risk is the uncertainty surrounding the firm's operations without considering the type of financing the firm uses. All of the listed determinants relate to the unpredictability of the results of business performance.

Verified Answer

The determinants of business risk include the following:

Rivalry among competitors
Variation in units sold
Variation in selling price
Variation in the input cost
Product obsolescence
Exposure in foreign operations
Regulatory risk and legal exposure
The extent to which costs are fixed: Operating leverage

Purchase this answer to view it. $5
Login/Sign up for free, load your wallet instantly using PayPal or cards and purchase this solution to view it.

Looking for the solution to this or another homework question?

If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.