Question
Which of the following statements is incorrect? a. Debt financing reduces a firm's risk because it does not create any contractual obligation to make periodic
Which of the following statements is incorrect?
a. Debt financing reduces a firm's risk because it does not create any contractual obligation to make periodic interest payments and, at maturity, it does not require to repay the amount that is borrowed.
b. A general partnership is a partnership in which all of the partners are owners of (investors in) the business and active in managing it.
c. Suppliers are stakeholders who want to be paid for goods or services they provide.
d. The risk manager monitors and manages the firm's risk exposure in financial and commodity markets and the firm's relationships with insurance providers.
e. All the answers are correct except one.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started