Identify the Statement That Is Incorrect

question 204

Multiple Choice

Identify the statement that is incorrect.

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

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Definitions:

Reinforcement Theory

A concept in psychology that emphasizes the role of reinforcing stimuli in encouraging desired behaviors by increasing the likelihood of their recurrence.

Outcome

refers to the final product or result attained from a process, action, or event which can be used to measure the effectiveness or success of the operation.

Stimulus

A stimulus is an event or object that elicits a sensory or behavioral response in an organism or system.

Goal Theory

A framework suggesting that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.