Respuesta :
If business risk decreases for Megabucks, Inc., the P/E will option(a) i.e, increase other things the same.
What do you understand by business risk?
Business risk is the potential for a firm or organization to have lower earnings or failure. Business risk is anything that compromises a company's capacity to meet its financial objectives. Numerous variables may combine to produce business risk.
Every organization should consider these five forms of business risk as part of their strategy and planning process:
- Risks associated with security and fraud,
- compliance,
- operations,
- financial or economic risk,
- and risk associated with operations.
- Risk to reputation.
Damage from fire, flood, or other natural disasters is a few examples of hazards based on uncertainty. the sudden financial loss brought on by a recession or the failure of another company that owes you money. loss of significant customers or suppliers. reduced market share.
To know more about Business risk refer to: https://brainly.com/question/12805502
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