Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) A firm's business risk is determined solely by the financial
Characteristics of its industry.
B) 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.
C) One of the benefits to a firm of being at or near its target
Capital structure is that this eliminates any risk of bankruptcy.
D) A firm's financial risk can be minimized by diversification.
E) The amount of debt in its capital structure can under no
Circumstances affect a company's business risk.