Which of the Following Is NOT a Way Risk Management

question 2

Multiple Choice

Which of the following is NOT a way risk management can be used to increase the value of a firm?

• A) Risk management can increase debt capacity.
• B) Risk management can help a firm maintain its optimal capital budget.
• C) Risk management can reduce the expected costs of financial distress.
• D) Risk management can help firms minimize taxes.
• E) Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.

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Definitions:

Philosophy

A system of beliefs or ideas concerning the nature of existence, knowledge, values, reason, mind, and the universe.

German works council

Employee representative bodies in Germany that work with employers to discuss and resolve workplace issues, distinct from trade unions but also focusing on workers' rights.

Labor union

An organized association of workers formed to protect and further their rights and interests.

French unions

Labor unions in France, known for their significant role in national labor policies and practices, and renowned for a high level of activism and participation in protests and strikes.