Which of the Following Statements Is Correct

question 17

Multiple Choice

Which of the following statements is correct?

• A) A firm's business risk is solely determined by the financial characteristics of its industry.
• B) The factors which affect a firm's business risk are determined partly by industry characteristics and partly by economic conditions.Unfortunately,these and other factors which affect a firm's business risk are not subject to any degree of managerial control.
• C) One of the benefits to a firm of being at or near its target capital structure is that financial flexibility becomes much less important.
• D) The firm's financial risk may have both market risk and diversifiable risk components.
• E) The above statements are all false.

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Definitions:

Impaired Thinking

A reduced capability to process information, make decisions, or solve problems, often as a result of various medical, psychological, or neurodevelopmental conditions.

Dementia

A group of symptoms affecting memory, thinking, and social abilities severely enough to interfere with daily functioning, often due to brain disease or injury.

Very Aged

This term describes individuals who are significantly advanced in years, often considered to be in the late stages of the elderly demographic.

Source Amnesia

A memory disorder where an individual can remember certain information but is unable to recall where, when, or how they learned that information.