Question: Which of the following sources of new earnings volatility represents

Which of the following sources of new earnings volatility represents the effect of business versus financial risk (discuss the rationale for your decisions):
a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project.
b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents. However, last year the firm acquired its own printing press (paying cash).
c. Smithers Enterprises has been a specialty retail shop that sold outdoor camping equipment. The firm recently decided to purchase a golf course.

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  • CreatedSeptember 11, 2015
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