Which of the Following Statements Is Correct

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.