Business Risk and AnalysisDetermine whether a steel company or a retail food chain would have a greater business risk. Provide support for your rationale. Select one of the limitations of ratio analysis and indicate why you believe it is a major concern when predicting future financial performance ANSWER:

As defined by Reilly and Brown (2012), business risk is the uncertainty of operating income caused by the firms industry. Determining the standard deviation of an industrys operating income or sales is a common method to measure business risk or variability. Dividing the standard deviation value by the mean provides the final ratio. The steel industry it tied to other cyclic industries with high variability; consider the automotive industry, for example. In the...