Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A) The lower the level of a firm's debt, the higher the firm's leverage.
• B) The lower the level of a firm's debt, the lower the firm's equity multiplier.
• C) The lower the level of a firm's debt, the higher the firm's equity multiplier.
• D) The tax benefit from using debt financing reduces a firm's risk.

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Definitions:

Salespeople

Individuals who are responsible for selling products or services to customers, acting as a direct link between the company and its market.

Marketing Dashboard

A visual representation tool that displays key marketing metrics and KPIs, enabling easier tracking of performance and decision-making.

Sales Representatives

Individuals who represent a company by selling its products or services to customers, often directly.

Undue Influence

A situation in which an individual is able to persuade another's decisions due to the relationship between the two parties, often undermining the independence of the decision.