Which One of the Following Statements Is NOT Correct

question 74

Multiple Choice

Which one of the following statements is NOT correct?

• A) A leveraged company is more sensitive to changes in its revenue income than a company that is not leveraged.
• B) A leveraged company is more risky than a company that is not leveraged.
• C) A company that uses debt magnifies the return to its shareholders.
• D) An all-equity company has no risk.

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Definitions:

Identity

The sense of self, characterized by one's beliefs, personality traits, appearance, and how these are perceived by oneself and others.

Self-concept

An individual's perception of their own abilities, weaknesses, beliefs, and personality.

Identity

The sense of self, characterized by one's beliefs, personality traits, and values, that distinguishes an individual from others.

Moral Intuitions

Immediate, gut-level ethical judgments that people make without relying on conscious reasoning.