How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Mike Your Own Question

Mike
Mike, Professional w/Adv. Degree
Category: Homework
Satisfied Customers: 19
Experience:  I have a business degree from UC Berkeley and tons of experience with homework!
11014066
Type Your Homework Question Here...
Mike is online now
A new question is answered every 9 seconds

Explain the difference between business risk and financial ...

Customer Question

Explain the difference between business risk and financial risk.
What other factors besides operating leverage can affect a firm's business risk?
Give an example of business risk and an example of financial risk for Wal-mart.
Submitted: 6 years ago.
Category: Homework
Expert:  Mike replied 6 years ago.
is this something that you need today?
Expert:  Mike replied 6 years ago.

ANSWER TO QUESTION 1:

Explain the difference between business risk and financial risk.

Business risk is the potential for loss of value through competition, mismanagement, and financial insolvency. There are a number of industries that are predisposed to higher levels of business risk as their market environment is more affected by changes in the economy, supplies, price sensitivity, etc. These industry factors may have adverse impact on a company operating income and consequently affects sales and operations and this business risk will change the botXXXXX XXXXXne. Usually is measured by the standard deviation of the historical operating income. Financial risk, is a part of business risk, however it is the additional risk resulting from debt, or the increase of economic leverages that may affect equity or the inability to meet debt commitments. In general, companies that issue more debt instruments will carry higher financial risk.

Mike, Professional w/Adv. Degree
Category: Homework
Satisfied Customers: 19
Experience: I have a business degree from UC Berkeley and tons of experience with homework!
Mike and 2 other Homework Specialists are ready to help you
Expert:  Mike replied 6 years ago.

QUESTION 2

What other factors besides operating leverage can affect a firm's business risk?

Other factors than can influence the firm's business risk might be linked to the type of industry. Price sensitivity or how variations in the price due to new competitors, consumer fatigue, and market share changes, etc. can increase the business risk of the operation. In addition, mismanagement, segment performance, deterioration of the economy, borrowing or lending failures, increases in costs related to financial operations, decline in value of collateral, cyclical changes of the market and many other factors that can influence the operating leverage by influencing the cycle of sales, distribution, costs and the normal operation of the company.

Mike, Professional w/Adv. Degree
Category: Homework
Satisfied Customers: 19
Experience: I have a business degree from UC Berkeley and tons of experience with homework!
Mike and 2 other Homework Specialists are ready to help you
Expert:  Mike replied 6 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
Mike, Professional w/Adv. Degree
Category: Homework
Satisfied Customers: 19
Experience: I have a business degree from UC Berkeley and tons of experience with homework!
Mike and 2 other Homework Specialists are ready to help you
Customer: replied 6 years ago.
Thanks for your help...
Expert:  Mike replied 6 years ago.

Hi,

I noticed that you accepted the question 3 times, so that is going to cause you a charge of 3 times the amount you intended to offer!. I want you to be happy and I am advising you, if this was not your intention to contact justanswer.com for a refund.

They are super nice, and you will not have any problems with them. They see this all the time. It is just a little bit confusing! :-)

I am also contacting a moderator so that they can take care of this, hopefully without you even having to do anything...

I'll check back with you... Take Care

Customer: replied 6 years ago.
I made a mistake I thought I had to accept them on three different checks. Idid know that I should have submitted it once for all three. Thanks for your help..
Expert:  Mike replied 6 years ago.

Yes, don't worry a moderator told me that they already solved the problem!..

Happy to help!

 

Take care

Customer: replied 6 years ago.
Thanks you are Great!!!!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3458
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3124
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2385
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1988
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1876
    Bachelors Degree and CPA with Accounting work experience
  • http://ww2.justanswer.com/uploads/avremote/photoa.jpg Seanna's Avatar

    Seanna

    Tutor

    Satisfied Customers:

    1781
    3,000+ satisfied customers, all topics, A+ work
 
 
 
Chat Now With A Tutor
Mike
Mike
10 Satisfied Customers
I have a business degree from UC Berkeley and tons of experience with homework!