Which of the Following Correctly Completes This Sentence: All Else

question 221

Multiple Choice

Which of the following correctly completes this sentence: All else the same, _____________.

• A) The business risk of a firm increases when it takes on a risky project.
• B) The business risk of a firm increases when it takes on more debt.
• C) The financial risk of a firm decreases when it takes on a risky project.
• D) The financial risk of a firm increases when it takes on more equity.
• E) The higher the business risk for a firm, the higher the financial risk as well.

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Definitions:

Limited Knowledge

A state or condition where an individual has only a partial understanding of a subject or area.

Zone of Acceptable Alternatives

A range of options or solutions that are considered acceptable in the decision-making process, even if they are not the ideal or preferable choices.

Boston

A historic city in Massachusetts, United States, known for its significant role in American history, education, and culture.

Tentative Language

A form of communication characterized by a lack of certainty or by expressions of doubt and caution.