Which of the Following Is Not a Correct Statement Regarding

question 117

Multiple Choice

Which of the following is not a correct statement regarding business risk and financial instruments?

• A) Business risks associated with financial instruments will vary depending of the aggressiveness of a company's investing activity.
• B) Business risk will be higher for companies investing in less liquid securities.
• C) Financial services firms are exposed to very little risk with their financial instruments.
• D) Business risk for a company will be higher when investments represent a greater proportion of total assets.

Analyze the treatment of interest, lawyer’s fees, and other specific expenses in the context of bankruptcy and reorganization.

Grasp the concept of asset availability and distribution to creditors under various bankruptcy scenarios.

Comprehend the responsibilities of and actions taken by a bankruptcy trustee.

Understand and apply the concept of profit margin ratio and its implications in fiscal analysis.

---

Definitions:

Diaphragm

A large, dome-shaped muscle at the base of the lungs that plays a key role in breathing.

Superior Phrenic Artery

The superior phrenic artery supplies blood to the upper part of the diaphragm, the main muscle involved in breathing.

Blood Vessels

Tubular structures carrying blood through the tissues and organs; a network that includes arteries, veins, and capillaries.

Celiac Artery

A major artery that supplies oxygenated blood to the liver, stomach, abdominal esophagus, spleen, and the superior half of both the duodenum and the pancreas.