Which of the Following Is Correct Regarding the Total Risk

question 105

Multiple Choice

Which of the following is correct regarding the total risk of a company?

• A)A company can change its risk level over time.
• B)Some firms is riskier because they offer many different products and/or services.
• C)Companies can change their risk by reducing the amount of money they have borrowed.
• D)None of these statements are correct.

Analyze the effectiveness of various cash management strategies.

Understand the implications of short-term vs. long-term financing decisions for working capital.

Calculate the effective interest rate on loans and understand its impact on financing decisions.

Understand the role of working capital in the operational efficiency of a business.

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Definitions:

Job Analysis

A systematic process of gathering, documenting, and analyzing information about the responsibilities, duties, skills, outcomes, and work environment of a specific job.

People-centered

An approach or mindset that prioritizes the welfare, development, and engagement of people within an organization or community over other considerations.

Human Capital

The knowledge, skills, and abilities possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Management Practices

The strategies, methods, and techniques used by managers to perform their functions of planning, organizing, leading, and controlling within an organization.