Which One of the Following Statements Is NOT Correct

question 18

Multiple Choice

Which one of the following statements is NOT correct?

• A) A leveraged firm is riskier than a firm that has no leverage.
• B) A leveraged firm is less risky than a firm that has no leverage.
• C) A firm that uses debt magnifies the return to its shareholders.
• D) A firm that does not use debt incurs opportunity cost of increasing value of shares.

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Definitions:

Informed Consent

A process by which a participant voluntarily confirms their willingness to participate in a study or procedure, after understanding all its relevant aspects.

Therapeutic Misconception

The misunderstanding among participants in clinical research that the primary purpose of a clinical trial is to benefit them individually, rather than to gather data for the advancement of medical knowledge.

Office

A place designated for professional or clerical work, often housing employees and their equipment.

Department of Health

A government agency responsible for public health policy, administration, and services.