- CFA Exams
- CFA Exam: Level I 2021
- Study Session 11. Corporate Finance (2)
- Reading 34. Measures of Leverage
- Subject 1. Business Risk and Operating Leverage
CFA Practice Question
Business risk is the combined risk of ______ and ______.
II. financial risk
III. operating risk
IV. cash flow risk
I. sales risk
II. financial risk
III. operating risk
IV. cash flow risk
Correct Answer: I and III
User Contributed Comments 7
| User | Comment |
|---|---|
| nsmwaura | Can someone explain this further |
| Rotigga | It's just the definition of Business Risk. |
| Nightsurfer | Business risk is independent of capital structure. Choice of capital structure will impact financial risk and CF risk. |
| maria15 | Thanks Nightsurfer! |
| johntan1979 | You can save everyone the time and trouble by reading the notes. Takes only 5 mins to do so. |
| gill15 | it's all about doing questions...I even read this but always do in a lazy way...now that i've done a question...its good to go... |
| Inaganti6 | Shots fired shots fired requesting backup Officer John Tan in hot pursuit of NSMAura |