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A firm's formal organization would be better suited than its informal organization to
Debt-Equity Ratio
A financial ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.
Financial Risk
The chance of incurring a loss in capital in an investment or business operation.
Business Risk
The potential for losses or less-than-expected profits within the operations of a company, not related to financial debt but to the business's environment and operations.
Levered Firms
Companies that have incurred debt. Leveraging amplifies both the potential returns and risks of investments.
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