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.

---

Definitions:

Horizontal Decalage

The concept in developmental psychology indicating differences in the rate of development across various domains at the same age level.

Trampolines

Equipment consisting of a strong fabric stretched over a steel frame using coiled springs, used for recreational jumping and acrobatics.

Motor Scooters

Two-wheeled vehicles with a step-through frame and a platform for the operator's feet, powered by a motor, designed for efficient transportation.

American Academy of Pediatrics

A professional organization of pediatricians dedicated to the health, safety, and well-being of infants, children, adolescents, and young adults.