Which of the following is correct regarding the total risk of a company?
A)A company can change its risk level over time.
B)Some firms is riskier because they offer many different products and/or services.
C)Companies can change their risk by reducing the amount of money they have borrowed.
D)None of these statements are correct.

Question

Quizplus · Accepted Answer

The risk level of a company can change over time due to various factors such as changes in industry trends, economic conditions, and management decisions.

Answer: B
 Companies that offer a wider range of products and services are generally considered to be riskier as they may be more vulnerable to market fluctuations and changes in consumer preferences.

Answer: C
 Companies can reduce their risk by reducing their debt burden, which can improve their financial stability and make them less vulnerable to market downturns. However, this is only one of many factors that can influence a company's risk level.

Therefore, choices A and B are correct whereas choice C is incorrect.

Which of the Following Is Correct Regarding the Total Risk