the business risk of a company: multiple choice A. depends on the firm's level of unsystematic risk. B. is inversely related to the required return on the firm's assets. C. is dependent upon the relative weights of the debt and equity used to finance the firm.X D.has a positive relationship with the firm's cost of equity. E.has no relationship with the required return on a firm's assets according to M& Proposition II.

Respuesta :

Business risk is the possibility that a company or organisation will experience lower profits or fail. Anything that jeopardises a business' ability to achieve its financial goals is considered a business risk. Numerous elements may interact to cause business risk.

The business risk of a firm depends on the willingness of its shareholders to risk everything for the company.

What Does the Term Shareholder Mean?

A person or organization that has contributed funds to a corporation in exchange for a "share" of ownership is referred to as a shareholder. Common or preferred shares issued by the corporation and held (i.e., owned) by the shareholder serve as a representation of that ownership.

the correct option is D.

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