Which of the Following Statements Is CORRECT

question 44

Multiple Choice

Which of the following statements is CORRECT?

• A) A firm's business risk is determined solely by the financial characteristics of its industry.
• B) The factors that affect a firm's business risk include industry characteristics and economic conditions,both of which are generally beyond the firm's control.
• C) One of the benefits to a firm of being at or near its target capital structure is that this generally minimizes the risk of bankruptcy.
• D) A firm's financial risk can be minimized by diversification.
• E) The amount of debt in its capital structure can under no circumstances affect a company's EBIT and business risk.

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Definitions:

Timer Instruction

Timer Instruction is a command or function in programming used to manage the timing and delays within processes or operations, essential for sequential control.

Counter Instruction

A programming instruction used to count occurrences of an event, often used in looping structures or to keep track of quantities in automation.

Accumulated Count

A tally or total that increases over time, often used in various applications such as counting events, objects, or the amount of a substance processed.

Light

A form of electromagnetic radiation visible to the human eye, and the medium through which human beings can perceive the world visually.