Answer a. A firm\'s business risk is determined solely by the financial characte

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a. A firm's business risk is determined solely by the financial characteristics of its industry. b. The amount of debt in its capital structure can under no circumstances affect a company's EBIT and business risk. c. One of the benefits to a firm of being at or near its target capital structure is that this generally minimizes the risk of bankruptcy. d. The factors that affect a firm's business risk include industry characteristics and economic conditions, both of which are generally beyond the firm's control. e. A firm's financial risk can be minimized by diversification

Explanation / Answer

ANSWER : Option (d), The factors that affect a firm's business risk include industry characteristics and economic conditions, both of which are generally beyond the firm's control.

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