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which of the following statements is correct? a. a firm's financial risk can be minimized by diversification. b. the factors that affect a firm's business risk include industry characteristics and economic conditions, both of which are generally beyond the firm's control. c. the amount of debt in its capital structure can under no circumstances affect a company's ebit and business risk. d. a firm's business risk is determined solely by the financial characteristics of its industry. e. one of the benefits to a firm of being at or near its target capital structure is that this generally minimizes the risk of bankruptcy.

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A firm's business risk is determined solely by the financial characteristics of its industry is correct.

Is firm the same as company?

A company, or firm, is a type of commercial entity that operates with the goal of turning a profit by selling products and services. Firm and business or company are interchangeable terms. Corporations and sole proprietorships are just two of the many organizational forms that businesses can use.

Between a company and a firm, what is the difference?

A firm is a company that engages in the commercial sale of goods and services, typically professional services, for a profit. Contrarily, a company refers to a business engaged in any revenue-generating activity including the selling of products and services and encompasses all commercial trades and structures.

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