Quick Finance Tip – Business, Sales, and Operating Risk

Quick Finance Tip – Business Risk, Sales Risk, and Operating Risk

12/24/2017

Business risk is associated with operating earnings, and is risky because total revenues are risky (as are the costs of producing revenues). Business Risk is the combination of both Sales Risk and Operating Risk.

Sales risk refers to the uncertainty with respect to price and quantity
Operating risk is attributed to the operating cost structure (greater the fixed operating costs, greater the operating risk)

2 Comments

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2/2/2018 05:36:50 am

Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work.

Motivence

2/2/2018 06:50:22 am

That’s a great question. We are made up of a small group of writers, all of course with diverse backgrounds. It ranges to having exposure in many areas. In this case for this article, we will lean on our business credentials, with whom had exposure in MBA, Masters, CPA, and CFA teachings.

But this is just a small example of this.

Thanks for the feedback.

Quick Finance Tip – Business Risk, Sales Risk, and Operating Risk

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