- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 2. Factors Affecting Capital Structure
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 |