Which of the following are NOT ways risk management can be used to increase the value of a firm?
A) risk management can help a firm maintain its optimal capital budget.
B) risk management can reduce the expected costs of financial distress.
C) risk management can help firms minimize taxes.
D) risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.
E) risk management can increase debt capacity.

Question

Quizplus · Accepted Answer

Risk management is not typically used to defer bonuses for tax purposes; it focuses on managing financial risks to stabilize and enhance firm value.

Which of the Following Are NOT Ways Risk Management Can