The Level of Financial Risk to Which a Firm Is

question 95

Multiple Choice

The level of financial risk to which a firm is exposed is dependent on the firm's:

• A)tax rate.
• B)debt-equity ratio.
• C)return on assets.
• D)level of earnings before interest and taxes.
• E)operational level of risk.

---

Definitions:

Phalanges

The bones in the fingers and toes of the human body, playing essential roles in movement and dexterity.

Metacarpals

The five elongated bones linking the wrist to the fingers in the hand.

Carpals

The eight small bones forming the wrist that connect the hand to the forearm.

Tarsals

Bones constituting the part of the foot between the leg and the metatarsals, including the ankle bones and forming the structure of the heel and the back of the foot arch.