Which of the Following Statements Is Incorrect

question 148

Multiple Choice

Which of the following statements is incorrect?

• A) Higher financial leverage involves higher risk.
• B) Risk is higher if a company has more liabilities.
• C) Risk is higher if a company has higher assets.
• D) The debt ratio is one measure of financial risk.
• E) Lower financial leverage involves lower risk.

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Definitions:

Emotional Stability

A personality trait characterized by the ability to remain calm and composed, especially in stressful situations.

Big Five

A model outlining five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Sociability

The quality of being willing to engage in social interactions and form relationships with others.

Self-Esteem

An individual's subjective evaluation of their own worth or value, influencing attitudes and behaviors.