Which of the Following Statements Is Incorrect

question 229

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 used to measure financial risk
• E)Lower financial leverage involves lower risk

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Definitions:

Wide-Area Bargaining

A negotiation process that involves multiple business units or geographical locations aiming for a common agreement in labor terms.

Telecommunications

The transmission of words, sounds, images, or data in the form of electronic or electromagnetic signals over distance.

Multicraft Bargaining

A negotiation process for labor contracts that involves multiple crafts or trades within a union or multiple unions.

Intraorganizational Bargaining

The process of negotiation and compromise within an organization, often related to internal resource allocation, strategy direction, or conflict resolution between different departments or groups.