Which of the Following Statements Is CORRECT

question 31

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 are affected by industry characteristics and economic conditions.Unfortunately, these factors are generally beyond the control of the firm's management.
• C)One of the benefits to a firm of being at or near its target capital structure is that this eliminates any 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 business risk.

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Definitions:

Sexual Deviance

Behaviors or desires that deviate from societal norms or expectations regarding sexuality.

Socially Desirable Responding

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, potentially skewing survey or research results.

Deception

The act of misleading or deceiving someone, often used in psychological research to maintain experimental integrity.

Extraneous Variable

Any variable that is not intentionally studied within an experiment which could affect the outcome and thus confound the results.