Question
Which of the following statements is correct? A-The factors that affect a firm's business risk are affected by industry characteristics and economic conditions. Unfortunately, these
Which of the following statements is correct?
A-The factors that affect a firm's business risk are affected by industry characteristics and economic conditions. Unfortunately, these factors are generally beyond the control of the firm's management.
B- One of the benefits to a firm of being at or near its target capital structure is that this eliminates any risk of bankruptcy
C- a firm's financial risk can be minimized by diversification
D- the amount of debt in its capital structure can under no circumstances affect a company's business risk
E- a firm's business risk is determined solely by the financial characteristics of its industry
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