Which of the following comments about the relationship between the firm's financial situation and its ability to bear risk is correct? A. Highly leveraged farms will be more vulnerable to financial risk B. Farms with a small amount of capital can withstand larger losses before becoming insolvent. C. Cash flow commitments do not affect the firm's ability to repay loans D. Liquidity of the farm will not have a direct effect for farm's willingness to take risk

9. Which of the following comments about the relationship between the firm's financial situation and its ability to bear risk is correct? A. Highly leveraged farms will be more vulnerable to financial risk B. Farms with a small amount of capital can withstand larger losses before becoming insolvent. C. Cash flow commitments do not affect the firm's ability to repay loans 2. Liquidity of the farm will not have a direct effect for farm's willingness to take risk 9. Which of the following comments about the relationship between the firm's financial situation and its ability to bear risk is correct? A. Highly leveraged farms will be more vulnerable to financial risk B. Farms with a small amount of capital can withstand larger losses before becoming insolvent. C. Cash flow commitments do not affect the firm's ability to repay loans 2. Liquidity of the farm will not have a direct effect for farm's willingness to take risk