3. Business risk is determined in part by a corporation's choice of business activity and the manner in which it has financed those activities * O(a) True O (b) False O (c) Cannot say 4. An increase in a firm's level of debt will O (a) reduce the business risk of the firm O (b) increase the variability in earnings per share (c) lower the expected return on shareholders' funds (d) increase the return to the debt holders