Question

Which of the following factors would tend to reduce a firm's business risk?

a. The firm changes its operations to make them more cyclical.

b. The firm increases its operating leverage.

c. The firm increases the fixed costs that are associated with the manufacture of its products.

d. The firm shifts its sales strategy in an effort to sell substantially more high-priced durable goods than low-priced staple goods, which reverses the sales trend that occurred during the past decade.

e. The firm takes actions to improve the stability of its day-to-day operations.

Answer

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