Which of the following is NOT a way risk management can be used to increase the value of a firm?
A. Risk management can increase debt capacity.
B. Risk management can help a firm maintain its optimal capital budget.
C. Risk management can reduce the expected costs of financial distress.
D. Risk management can help firms minimize taxes.
E. Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.
Answer: E
You might also like to view...
The letter of transmittal should identify the need for further action on the part of the client, such as implementation of the findings or further research that should be undertaken
Indicate whether the statement is true or false
The configuration control activity of service asset and configuration management is where the status of CIs are maintained and reported on throughout their lifecycle.
Answer the following statement true (T) or false (F)
The Financial Accounting Standards Board hopes to make the U.S. acounting practices:
a. more consistent with those of other nations b. better than those of other nations c. less consistent with those of other nations d. isnt concerned with how the U.S. accounting practices compare to other nations.
Break-even analysis determines what sales volume must be reached for a product before the company's total revenue equals total costs.
Answer the following statement true (T) or false (F)