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:

Prophylactic Antibiotics

Antibiotics administered as a preventative measure against potential infections, especially prior to surgeries or dental procedures.

Sterile Procedure

Medical or surgical processes carried out under conditions designed to prevent infection, involving sterilized equipment and environments.

Sterile Instrument

A tool or device that has been made free from all forms of microorganisms, including spores, and is safe for use in medical procedures.

Sterile Saline Solution

A salt solution treated to eliminate microbes, used in medical procedures and wound cleaning.