3. Understandingbusiness financial risks The total risk in a firm is determined by evaluating the firm's business risk and financial risk. As an analyst, Ollvis is comparing two nearly identical manufacturing firms: Extensive Enterprise Inc and Little Business Corp. It is your job to evaluate the relative business and financial risks of Extensive and Little Business. The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but they differ on two critical characteristics: total debt and the standard deviation of expected NOPAT. The following table outines some of Extensive's and Lutle Buriness's characteristics: Use the given financial data to indicate which firm has the higher degree of each type of risk. Which firm has more business risk? Dttle Business Corp. Extensive Enterprise Inc. Which firm has more financial risk? Lttle Business Corp. evaluate the relative business and financial risks of Extensive and Little Business. The two firms have the same level of total assets and expected net operating profit after taxes (NOPAT), but total debt and the standard deviation of expected NOPAT. The following table outlines some of Extensive's and Use the given financial data to indicate which firm has the higher degree of each type of risk. Which firm has more business risk? Little Business Corp. Extensive Enterprise Inc. Which firm has more financial risk? Little Business Corp. Extensive Enterprise Inc