Difference between revisions of "Business risk"

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(Created page with "Business risk is the risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in future operating inco...")
 
(Definitions)
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 
:[[Business risk]]. The risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in future operating income or earnings before interest and taxes. Business risk is caused by many factors; two of the most important are sales variability and operating leverage.
 
:[[Business risk]]. The risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in future operating income or earnings before interest and taxes. Business risk is caused by many factors; two of the most important are sales variability and operating leverage.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[Business risk]]. The riskiness inherent in the firm's operations if it uses no debt.
  
 
==Related concepts==
 
==Related concepts==

Revision as of 03:57, 2 November 2019

Business risk is the risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in future operating income or earnings before interest and taxes. Business risk is caused by many factors; two of the most important are sales variability and operating leverage.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Business risk. The risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in future operating income or earnings before interest and taxes. Business risk is caused by many factors; two of the most important are sales variability and operating leverage.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Business risk. The riskiness inherent in the firm's operations if it uses no debt.

Related concepts

Related lectures