Which of the Following Statements Is Correct

question 39

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.

---

Definitions:

Spine

The column of vertebrae extending from the skull to the lower back, serving as a main support for the body and protecting the spinal cord.

Time Tracking

The process of recording and analyzing how much time is spent on various tasks, often used in the context of project management and employee productivity.

QBO Time

A feature or tool within QuickBooks Online (QBO) that tracks billable hours and integrates with payroll and invoicing.

Billable

Refers to work or services performed that can be charged to a client or customer.