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:

Neural Message

The information conveyed by neurons through electrical and chemical signals across synapses to communicate with other neurons, muscles, or glands.

Resting Potential

The electrical charge difference across the neuronal membrane when the neuron is not actively firing.

Action Potential

A brief electrical impulse by which information is transmitted along the axon of a neuron.

Wernicke's Aphasia

A language disorder caused by damage to the Wernicke's area of the brain, leading to difficulty in understanding spoken language and producing coherent sentences.