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Describe difference between business risk and financial risk

Describe difference between business risk and financial risk?
Business risk refers to the uncertainty company hold regarding to its operating income (also termed as earnings before interest & taxes or EBIT). Business risk is brought onto sales volatility & intensified through the existence of fixed operating costs.
Financial risk is the added volatility of net income caused by the presence of interest expense. Firms which have only equity financing have no financial risk because they have no debt on which to make fixed interest payments. On the other hand, firms which operate primarily on borrowed money are exposed to a high degree of financial risk.

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