Which One of the Following Statements Concerning Risk Is Correct

question 86

Multiple Choice

Which one of the following statements concerning risk is correct?

• A) The financial risk of a firm is NOT affected by the capital structure of that firm.
• B) An international firm has less exchange rate risk than a national firm.
• C) A firm can lower its financial risk by lengthening the term of its debt.
• D) The goal of financial engineering is to totally eliminate the financial risk of a firm.
• E) A firm can reduce its financial risk by combining various types of operations.

---

Definitions:

Performance Management Program

A systematic approach to aligning employees’ work with organizational goals, assessing performance, and guiding development.

Performance Indicators

Metrics or measures used to assess and analyze an employee's, department's, or organization's effectiveness and performance.

Internal Consultants

Employees or departments within an organization that provide expert advice and services to other parts of the same organization, akin to external consultants but focused on internal needs and challenges.

Non-Comparative

A method or approach that does not involve comparing elements or items with one another.