Which of the following leads to less business risks compared to other factors? a. High operating...

Which of the following leads to less business risks compared to other factors? a. High operating leverage? b. ?High percentage of fixed costs c. ?High interest rates d. ?More stable operations e. ?More financial risk

Expert Solution

Answer is d. More Stable Business Operations:
Explanation:
High leverage ratio. High fixed cost and high interest rates, are part of financial and operating leverage.
These factors poses a higher operating and financing risk in case of slower business economy.
Therefore, less business risk compared to all above factors is Stable Business operations.

jeff jeffy answered 3 years ago

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