Risk Management for Business Is Critical Due in Part to

question 92

Multiple Choice

Risk management for business is critical due in part to

• A) natural disasters.
• B) profitability.
• C) legal requirements.
• D) international requirements.

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Definitions:

Operating Efficiency

A measure of how well a company utilizes its resources to generate profits, often indicated by the ratio of output produced to input used.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt with its operating income.

Efficiency

The ability to accomplish a job with a minimum expenditure of time and resources.