Identify the Statement That Is Incorrect

question 68

Multiple Choice

Identify the statement that 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 more assets.
• D)The debt ratio is one measure of financial risk.
• E)Lower financial leverage involves lower risk.

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Definitions:

Not Snowing

The condition or fact of it not being a time or event during which snow is falling from the sky.

Snowing

The precipitation of snowflakes from the atmosphere, usually resulting in a white covering of the ground.

Proposition

A proclamation that asserts a judgment or opinion.

Compound Proposition

A statement formed by combining two or more propositions using logical connectors (like and, or, not), resulting in a proposition with a more complex structure.