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:

Short-term Storage

Short-term storage, also known as short-term memory, holds a small amount of information for a brief period, typically around 20 seconds.

Sensory Storage

A memory storage system that very briefly holds a vast amount of information from the five senses in close to their original sensory formats.

Computer Processing

Refers to the series of operations performed by a computer in order to collect, analyze, and store data.

Human Memory

The capacity of humans to store, retain, and recall information and experiences.