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NEW QUESTION: 1
Which of the following statements best describes the difference between financial leverage and financial risk?
A. As financial risk increase, financial leverage ratios will decrease.
B. Financial risk refers to the risk that a company may default on its debt and thus transfers the possession of the firm away from shareholders and onto creditors. Financial leverage, on the other hand, measures the effect interest payments have on pre-tax profits.
C. While increase in financial leverage may increase the volatility in pre-tax earnings, it does not necessarily mean that a company's probability of default will increase.
Answer: B
Explanation:
Financial risk uses balance sheet variables to measure how heavy the debt burden is to the company. Financial leverage uses income statement items to determine how much impact interest expense has on the volatility of pre-tax earnings.

NEW QUESTION: 2
Which of the following availability management activities is/are considered to be proactive as opposed to reactive?
1. Monitoring system availability
2. Designing availability into a proposed solution
A. 2 only
B. 1 only
C. None of the above
D. Both of the above
Answer: A
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
Select the option that best fits this description: Users who are often from the HR department, who may
have been involved with the set-up of the session, and who have the ability to calibrate ratings in the
session.
Please choose the correct answer.
Response:
A. Executive Reviewer
B. Session Facilitators
C. Session Owners
D. Process Owners
Answer: B