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(Business and financial risk) Which of the following sources of new earnings volatility demonstrates the effect of business versus financial risk (discuss the rationale for

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(Business and financial risk) Which of the following sources of new earnings volatility demonstrates the effect of business versus financial risk (discuss the rationale for your decisions): a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project. b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents. However, last year the firm acquired its own printing press (paying cash). C. Smithers Enterprises has been a specialty retail shop that sells outdoor camping equipment. The firm recently decided to purchase a golf course. a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project. The fact that the firm borrowed 100% of the cost of the new investment suggests that the firm's risk has risen. (Select from the drop-down menu.) b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents. However, last year the firm acquired its own printing press (paying cash). In this instance an outsourcing firm has entered into a new business related to printing. Also, the firm paid cash for the asset acquisition. One might think that the firm's the drop-down menu.) risk may have changed. (Select from c. Smithers Enterprises has been a specialty retail shop that sells outdoor camping equipment. The firm recently decided to purchase a golf course. It would appear that this firm may have changed its overall risk since the firm was a specialty retailer and now combines this business with that of a golf course. (Select from the drop-down menu.)

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