If a high percentage of a firm's operating costs are fixed and hence do not decline when demand falls off, this will _____.
A. decrease financial leverage
B. optimize the capital structure of the firm
C. increase the business risk of the firm
D. decrease the firm-specific risk of the firm
E. intensify the risk borne by the firm's common stockholders
Answer: C
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All of the following are disadvantages of fair value use except:
A) fair values may not be readily obtainable. B) fair values may cause more fluctuations as change occurs from period to period. C) comparability between companies may be impacted by different fair value measurement. D) fair values can only be used on balance sheet accounts.
When Kenny applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Kenny to have his financial statements
A. verified. B. audited. C. affirmed. D. certified. E. insured.
Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products. It was shown to cause potentially fatal pulmonary hypertension and heart valve problems
This eventually led to the withdrawal of the product and legal damages of over $13 billion. This is an example of ________.A) a product recall B) lean manufacturing C) production control D) the bullwhip effect E) a green business
The three main considerations in evaluating a channel of distribution are costs, coverage, and customer service.
Answer the following statement true (T) or false (F)