On which of the following items will an increase in the debt ratio generally have no effect?
A)business risk
B)total risk
C)financial risk
D)market risk

Name: On which of the following items will an increase in the debt ratio generally have no effect? A)business risk B)total risk C)financial risk D)market risk
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Question

Quizplus · Accepted Answer

Business risk is related to the operational aspects of a company and is independent of its capital structure, so an increase in the debt ratio does not affect it.

On Which of the Following Items Will an Increase in the Debt