The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk. To describe: The way given industry condition will result in business risk.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please don't use hand rating

"Dividend paying stocks cannot be growth stocks" Do you agree or disagree? Discuss choosing two stocks to help justify your view.

Answer 2

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 6

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 7

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 8

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 9

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 10

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 11

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 12

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 13

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 4 - Prob. 4.1RQ Ch. 4 - Prob. 4.2RQ Ch. 4 - Prob. 4.3RQ Ch. 4 - Prob. 4.4RQ Ch. 4 - Prob. 4.5RQ Ch. 4 - Prob. 4.6RQ Ch. 4 - Prob. 4.7RQ Ch. 4 - Prob. 4.8RQ Ch. 4 - Prob. 4.9RQ Ch. 4 - Prob. 4.10RQ

The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk. To describe: The way given industry condition will result in business risk.

Solution Summary: The author explains that a sudden fall in demand would decrease the profit earning capacity of the business and hence exposure to more business risk.

Videos

Want to see the full answer?

Chapter 4 Solutions