Which of the Following Statements Regarding Risk,or the Avoidance of Risk,is

question 38

Multiple Choice

Which of the following statements regarding risk,or the avoidance of risk,is correct?

• A)A firm's business risk is determined solely by the financial characteristics of its industry.
• B)Risk due to industry characteristics is beyond the control of the firm's management.
• C)One of the benefits to a firm of being at or near its target capital structure is that this eliminates any risk of bankruptcy.
• D)A firm's financial risk can be minimized by diversification.

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Definitions:

Stress Interview

Interview in which the candidate might be asked questions designed to unsettle him or her or is subjected to long periods of silence, criticism, interruptions, and or hostile reactions by the interviewer.

Integrity Test

An assessment designed to evaluate a candidate's honesty, trustworthiness, and adherence to moral and ethical principles.

Personality Test

An assessment that evaluates the character or psychological traits of an individual.

Cognitive Test

A psychological assessment designed to measure mental functions such as memory, reasoning, and problem-solving abilities.