Archive about 'Leverage'

The Factors Affecting Or Influencing Business Risk

Tweet Earlier article describe the basics of Business Risk. Append below are the major factors that affects or influence Business Risk: 1.   Intensity of Competition-The higher the level of competition, the higher the business risk 2.     Higher Fixed Cost Structure-Generally, if a business has higher fixed costs it will result in higher business risk. If the […]

Understand The Term Business Risk

Tweet Unsystematic risk or unique or specific risk which is diversifiable can be further classified into business risk and financial risk Append below some basic points on Business Risk: Business Risk Dependent on economic conditions and management’s decision with respect to capital investment. Concerned with the uncertainty associated with an investment’s earnings and the investment’s […]