Why does business risk vary from industry to industry?

Q: What is the connection between Business Valuation and Financing Options ?

A: Business valuation:  The economic worth of a firm or business unit is determined via business…

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: The financial leverage implications for company performance?

A: Financial Leverage means the inclusion of debt in the company's capital structure. Debt is used to…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: 1. How are the capital market line and security market line similar?  How are they different?

A: Note : As per the bartelby guidelines only first question will be answered.    Similarities in…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

Q: How does extent of rivalry among competitors affect the investment industry sector?

A: Here we are supposed to elaborate the degree to which the rivalry among the competitors affects the…

Q: What reforms to the financial system might reduce its exposure to systemic risk?

A: The important act for the reforms to the financial system that might reduce its exposure to systemic…

Q: Why are financial intermediares so important to an economy?

A: Definition : In simple words, financial intermediaries refers to the individuals and entities that,…

Q: Define corporate risk

A: Corporate risk is the risk related to the company’s normal course of activities. The corporate…

Q: Why is trading volume an important consideration when undertaking technical analysis?

A: Trading volume refers to the number of shares that was traded for a security for a given period of…

Q: dows banking is a business industry?

A: Business is an activity to produce and sell and the products or rendering services above the actual…

Q: What can go wrong with financial leverage? Should it be used at all by a business?

A: Financial leverage refers to a term that tells us the use of money which one borrowed means the debt…

Q: How does operating leverage affect business risk?

A: If an organization has high fixed expenses or cost, and if an organization experiences issues…

Q: What is the relationship of WACC to the market value of a company?

A: A company's capital structure is the specific mix of debt and equity it employs to fund its overall…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: How can you estimate the business risk of a firm?

A: Beta is the systematic risk. As a company opts to make decision to the best of interest, it is…

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that…

Q: how a firm might use a hedging to reduce risk in its business? please include examples

A: Hedging is an important tool in finance. A firm or a company often makes use of hedging to reduce…

Q: Explain how pure risk has an adverse effect on the economy

A: Pure risk is one of the major type of risk which is beyond the control and can affects the economy…

Q: What is business risk? What factors influence afirm’s business risk?

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry…

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and…

Q: What could possibly go wrong while using financial leverage? Do you think it should be utilized by a…

A: Financial leverage: Financial leverage is a word that describes the use of borrowed money (debt) to…

Q: Implications of the business risk approach?

A: Business risk is the exposure a company or organization has to factor(s) that will lower its profits…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: what are the benefit to the financial institution and their consumers of measuring or mitigating…

A: A strategy for planning for and decreasing the impact of hazards on an organisation is risk…

Q: Why use a business risk approach?

A: Business risk is generally identified by the Auditor. By reviewing the financial statements Auditor…

Q: why do firms use non financial measures

A:

Q: discuss why financial markets should be regulated

A: Financial markets is the market which is in-fact actually not a physical market where is the goods…

Q: What does the term hedging mean? Why do companies elect to follow this strategy?

A:

Q: critically discuss why financial markets should be regulated in terms of  asymmetric information,…

A: Financial market is taking asymmetric information, As it involved one of the two parties, they take…

Q: what happens if a company doesn't manage risk ?

A: Risk management is important part of carrying the business activities. There are different types of…

Q: why banker acceptance desirable for the exporter?

A: For foreign exchange, the approval of bankers is seen as a way of guaranteeing payment. The letter…

Q: What are some determinants of business risk?

A: Business risk is referred as the exposure of risk factors towards a company or a business which…

Q: What are Critical success factors of the investment sector or banking sector?

A: Banking is the ultimate expression of using other people's money to generate profit. Banks use…

Q: What is the importance of International Financial market ? How does it facilitate business…

A: The International Financial Market is a marketplace for individuals to trade their financial riches…