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.

Distinguish between population parameters and sample statistics in the context of statistical inference.

Recognize the conditions under which the CLT applies to both continuous and discrete distributions.

Understand the concept of standard error and its significance in describing the variability of sample statistics.

Comprehend the impact of sample size on the sampling distribution, including effects on the standard error and the shape of the distribution.

---

Definitions:

Dominant Culture

The set of norms, values, beliefs, and practices that is accepted and upheld by the majority within a society or organization.

Adaptive Organizational Culture

Refers to a culture within an organization that is flexible, agile, and capable of adapting to change or environmental demands.

Organizational Goals

The objectives or targets that an organization aims to achieve within a specified timeframe, guiding its strategic and operational activities.

Attraction-Selection-Attrition Theory

A theory that suggests organizations develop unique cultures by attracting, selecting, and retaining individuals whose personalities fit well with the current organizational culture.