Archive about 'Leverage'
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 [...]
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 [...]