Discussion 1&2 - What is the relationship between business

Corporate Finance

There will be two discussion questions listed below. By the due date assigned respond to one of the discussion questions and submit your response to the Discussion Area. Use the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using APA format.

Discussion Question 1:

What is the relationship between business risk, financial risk, and beta (systematic or market risk). Justify your answer.

Discussion Question 2:

Explain how the degree of operating and financial leverage can change the profitability of the firm when sales levels change significantly. Justify your answer.