Which of the following is considered a part of financial risk?

Selected Answer:
Answers:	A. Demand variability
	B. Sales price variability
	C. The extent to which operating costs are fixed
	D. Changes in interest rates on debt
	E. The ability to change prices as costs change

Which of the following is an example of business risk?

Selected Answer:	D. Currency risk
Answers:	A. Default risk
	B. Prepayment risk
	C. Strategic risk
	D. Currency risk
	E. Equity risk

Which of the following leads to less business risks compared to other factors?

Selected Answer:	B. High operating leverage
Answers:	A. High percentage of fixed costs
	B. High operating leverage
	C. More financial risk
	D. High interest rates
	E. More stable operations

Which of the following leads to less business risks compared to other factors?

Selected Answer:	B. High operating leverage
Answers:	A. High percentage of fixed costs
	B. High operating leverage
	C. More financial risk
	D. High interest rates
	E. More stable operations