Which of the Following Statements Is CORRECT

question 68

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:

Oral Presentation

A spoken exposition or lecture, typically illustrated or accompanied by visual aids, to convey information to an audience.

Legal Information

Facts or data relating to the law, legal systems, or legal processes.

Formal Speech

A structured, planned address, usually of a serious nature, delivered to an audience.

Presentation Anxiety

Feelings of nervousness or fear experienced when presenting information in front of an audience.