Which of the following statements about business and, Ask an Expert

Finance

Which of the following statements about business and financial risk is false?

Business risk is the inherent risk to owners assuming no debt financing is used.

Financial risk is the risk added to owners when debt financing is used.

The concepts of business and financial risk are not

applicable to not-for-profit businesses.

Business risk can be measured by the standard deviation of ROE with no debt financing.

Financial risk can be measured by the difference in the standard deviations of ROE with and without debt financing.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92404103

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