Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

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