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Business risk vs Operational gearing

MM074y ago
I have seen business risk and operational gearing being interchanged. Can you please state that they are either same or am I mistaken? Thank you.
John MoffatJohn MoffatTutor4y ago#1
They are not the same. Operational gearing certainly affects the level of business risk, but so too does the nature of the business (i.e. the sector in which the business operates).
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