Asked by
Sai Kumar Sampangi
on Nov 07, 2024Verified
__________ arises from decisions that affect the left-hand side of the balance sheet, while ________________ arises from decisions that affect the right-hand side of the balance sheet.
A) Systematic risk; financial risk.
B) Business risk; financial risk.
C) Unsystematic risk; systematic risk.
D) Business risk; diversifiable risk.
E) Systematic risk; unsystematic risk.
Business Risk
The exposure a company has to factors that may lower its profits or lead to its failure.
Financial Risk
The possibility of losing money on an investment or business venture due to various factors like market volatility or credit risk.
Balance Sheet
A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.
- Differentiate between the concepts of business risk and financial risk, including their origins.
Verified Answer
KF
Learning Objectives
- Differentiate between the concepts of business risk and financial risk, including their origins.