Which of the following statements is CORRECT?

Group of answer choices

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.

One of the benefits to a firm of being at or near its target capital structure is that this eliminates any risk of bankruptcy.

A firm's financial risk can be minimized by diversification.

The amount of debt in its capital structure can under no circumstances affect a company's business risk.

A firm's business risk is determined solely by the financial characteristics of its industry.