Which of the Following Is True of Leverage on Firms

Which of the following is true of leverage on firms?

A) Shareholders prefer a lower leverage ratio than that preferred by management.
B) The firms that are more strongly influenced by shareholders have higher leverage ratios.
C) A small debt obligation limits management's ability to use corporate resources in ways that do not benefit investors.
D) If the leverage ratio is lower,the firm's systematic risk will also be lower