Identify the Statement That Is Incorrect

question 204

Multiple Choice

Identify the statement that is incorrect.

• A) Lower financial leverage involves lower risk.
• B) Higher financial leverage involves higher risk.
• C) The debt ratio is one measure of financial risk.
• D) Risk is higher if a company has more liabilities.
• E) Risk is higher if a company has higher assets.

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Definitions:

Competitive Advantage

The attributes that allow a company to outperform its competitors, such as superior products, services, or efficiencies.

Patented Technology

Innovations or inventions that are legally protected by patents, preventing unauthorized use, replication, or sale.

Timely New Products

The strategic introduction of new products to the market at the most opportune moment to meet consumer demand and stay competitively relevant.

Environmental Uncertainty

Refers to the degree of unpredictability and complexity in an organization’s external environment, affecting its decision-making processes.