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:

Downsizing

The planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness.

Outplacement Counseling

Assistance provided by a company to help former employees transition to new jobs.

HR Staff

Human Resources staff responsible for various personnel functions, including recruitment, training, benefits administration, and compliance with labor laws.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties find a mutually acceptable solution.