In a Setting Where There Is No Risk That a Firm

question 70

Multiple Choice

In a setting where there is no risk that a firm will default, leverage ________ the risk of equity.

• A) increases
• B) decreases
• C) does not change
• D) cannot say for sure

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Definitions:

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Non-violent crimes committed by individuals or corporations in the course of their professional lives, often involving financial fraud or corruption.

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A category of individuals in a society who are economically, socially, and culturally less privileged than others.

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Individuals who consume marijuana, a psychoactive drug from the Cannabis plant used primarily for medical or recreational purposes.

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The mean age of a population, calculated by dividing the sum of all individual ages by the number of individuals.