Identify the Statement That Is Incorrect

question 166

Multiple Choice

Identify the statement that is incorrect.

• A)Higher financial leverage involves higher risk.
• B)Risk is higher if a company has more liabilities.
• C)Risk is higher if a company has higher assets.
• D)The debt ratio is one measure of financial risk.
• E)Lower financial leverage involves lower risk.

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Definitions:

Thoracic Pressure

The pressure within the thoracic cavity, affecting respiratory and cardiovascular functions, influenced by lung volume and diaphragm movement.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing.

Intercostal Muscles

Muscles located between the ribs that play a role in the breathing process.

Thoracic Cavity

The part of the body located between the neck and the abdomen that houses organs such as the heart and lungs.