Business risk, as defined in terms of variation in a firm's operating performance and measured by EBIT, would be effected by variation in all of the following, except:

A) anticipated changes in federal regulations.
B) business operations.
C) expenses.
D) revenues.

Business Risk

The potential that a company will have lower than anticipated profits or experience a loss rather than making a profit.

EBIT

Earnings Before Interest and Taxes, an indicator of a company's profitability that excludes interest and income tax expenses.

Federal Regulations

Rules set forth by government agencies to control activities within various industries and protect public interests.