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 are 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 choices are correct.

Question

Quizplus · Accepted Answer

The total risk of a company is not constant and can change over time due to various factors such as changes in the economy, competition, and internal management decisions.

Answer: B 
 Companies that offer a wider range of products and services may be considered riskier as they are exposed to a diverse set of market conditions and competition.

Answer: C 
 A company can reduce its risk by reducing its debt levels, which decreases its financial obligations and the associated interest expenses. This can also improve the company's credit rating and ability to secure funding at lower costs.

Therefore, the correct answer is A and B.

Which of the Following Is Correct Regarding the Total Risk