Which of the Following Are NOT Ways Risk Management Can

question 15

Multiple Choice

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

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

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Definitions:

Commercial Interests

Commercial interests refer to the concerns, priorities, or objectives of businesses and entrepreneurs, particularly those related to making a profit and expanding market share.

Speaker of the House

The presiding officer of the United States House of Representatives, responsible for leading the House's legislative business and representing the body.

Congressional Enactments

Laws and regulations that have been formally approved and passed by both houses of Congress.

Federalists

Members of a political party or movement in the late 18th and early 19th centuries in the United States that supported a strong central government, the ratification of the U.S. Constitution, and an expansive interpretation of federal government powers.