The business risks complexion of a firm is determined by a combination of factors, including:

a. Capital budgeting decisions: The capital budgeting decisions of a firm, such as investments in new projects or equipment, can greatly affect the risk profile of the firm. High-risk projects may have a higher potential for returns, but also a higher probability of failure.

b. Zero-base budgeting: This method of budgeting requires a firm to justify all its expenses, which may affect the risk profile of the firm by increasing or decreasing the level of uncertainty surrounding the firm's financial performance.

c. Sales forecast decisions: Accurate sales forecast decisions are crucial for a firm to effectively manage its resources and operations, which can affect the risk profile of the firm by increasing or decreasing the level of uncertainty surrounding the firm's financial performance.

d. Demand forecast decisions: The accuracy of demand forecast decisions can greatly affect the risk profile of the firm by increasing or decreasing the level of uncertainty surrounding the firm's financial performance, as well as its ability to meet customer demands.

All of the above mentioned factors can influence the risk profile of a firm, but the specific importance of each will depend on the firm's industry, products and services, and overall business strategy.

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